Zoe’s Kitchen acquired by Cava Group

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $300–700M

Context

In a definitive move to consolidate the Mediterranean fast-casual segment, Cava Group has agreed to acquire Zoe’s Kitchen. The deal is structured as a public-to-private (P2P) acquisition. This merger will create a combined entity with 327 restaurants across 24 states, establishing the clear market leader in the category.The acquisition is being financed through a substantial equity investment led by Act III Holdings, the investment vehicle of Ron Shaich (founder of Panera Bread), with participation from The Invus Group and existing Cava investors. This transaction effectively serves as a strategic turnaround play; Cava intends to apply its superior digital infrastructure and innovation-led management style to the extensive physical footprint of Zoe’s Kitchen, which had recently struggled with declining same-store sales and net losses.

Zoe’s Kitchen, which reported an EBITDA margin of [members only] in 2017, is valued in this transaction at an EV/EBITDA multiple of 10x–18x.

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Target

Zoe’s Kitchen Inc. is a prominent American fast-casual restaurant chain specializing in Mediterranean-inspired cuisine. Headquartered in Plano, Texas, the company operates a vast network of approximately 260 units across 20 states. Its menu focuses on fresh, "better-for-you" options including salads, pitas, and grilled entrees, catering to the growing consumer demand for healthy and convenient dining alternatives. Regarding its market positioning, Zoe’s Kitchen is a sector leader in the Mediterranean fast-casual category by unit count. Despite its significant physical footprint, the company recently faced operational headwinds, navigating a challenging environment marked by increased competition in delivery and discounting. Its business model is primarily based on company-owned restaurant operations, which allows for centralized quality control but exposes the firm to higher fixed-costs and margin sensitivity during periods of fluctuating same-store sales.

Ent. Value

$300–700M

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2017

2016

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REFERENCES

Valuation range: EV $300–700M

EBITDA range: $10–30M

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Zoe’s Kitchen by Cava Group are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

FAQ

What transaction does this page cover?

This page covers Cava Group’s acquisition of 100% of Zoe’s Kitchen, an American company specialised in Hospitality, in 2018.

How was the acquisition of Zoe’s Kitchen by Cava Group valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $300–700M band and its EV/EBITDA multiple within the 10x - 18x range. Exact figures are available to members.

What was Zoe’s Kitchen’s EBITDA at the time of the deal?

At the time of the transaction, Zoe’s Kitchen’s EBITDA was estimated within the $10–30M bracket (FY 2017). Detailed financial figures are available to members.

What sources support the information on this transaction?

Data on this transaction was compiled from the official corporate announcement published by the parties, combined with independent reporting from specialized financial and M&A publications.

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