At what enterprise value was ZOE’S KITCHEN acquired in 2018?

During the acquisition of ZOE’S KITCHEN by CAVA GROUP in 2018, the transaction's Enterprise Value is estimated to be in the range of 300M - 700M USD.

What was the EV/EBITDA of ZOE’S KITCHEN when it was acquired by CAVA GROUP?

The estimated EV/EBITDA multiple for ZOE’S KITCHEN is in the range of 10x - 18x.

When was ZOE’S KITCHEN acquired by CAVA GROUP?

ZOE’S KITCHEN was acquired by CAVA GROUP in 2018.

What was the EBITDA of ZOE’S KITCHEN during the acquisition?

ZOE’S KITCHEN's EBITDA is estimated to be in the range of 10M - 30M USD.

How is the data for the ZOE’S KITCHEN acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the ZOE’S KITCHEN deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://cava.com/news/zoes-acquisition

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Home Database Retail & ConsumerZOE’S KITCHEN

08/2018

ZOE’S KITCHEN acquired by CAVA GROUP

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

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 in 2017, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Retail & Consumer sector (11.0x).

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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.

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REFERENCES

Valuation range: EV 300M - 700M USD

EBITDA range: 10M - 30M USD

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.

Press release: view release

Acquirer: cava group