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FinanceIPOs

Cava’s blockbuster IPO has an unlikely winner: The former CEO of Panera whose stake is now worth about $535 million

By
Lucy Brewster
Lucy Brewster
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By
Lucy Brewster
Lucy Brewster
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June 15, 2023, 4:36 PM ET
Cava debuted on the New York Stock Exchange with shares priced at $42.
Cava debuted on the New York Stock Exchange with shares priced at $42.Spencer Platt—Getty Images
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If early trading is any indication, the market has an appetite for Cava, the fast-growing Mediterranean fast-casual chain.

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The company debuted on the New York Stock Exchange this morning trading at $42 per share—nearly double the company’s Wednesday night pricing of $22 per share, which was already higher than its previous target range of $19 to $20. By Thursday afternoon, the stock was trading at $46 per share, a remarkable first day for an unprofitable company that drew some skeptics pre-IPO over its market value. The company could sell up to 16.6 million shares in an overallotment option.

Who has the most to gain from the company’s public market success? Former CEO of Panera and current Cava board chair Ron Shaich has a sizable 11% stake in the company, according to Cava’s securities filings. His 11.6 million shares are roughly worth a staggering $535.7 million at the stock’s current share price of $46 per share. Cava CEO Brett Schulman told Fortune yesterday that Shaich’s expertise has proved invaluable to the company. “Ron is kind of guiding us up Mount Everest as we climb the mountain,” said Schulman. “He is making sure we are wary of where we step and making sure we don’t take a wrong turn. Having done this at scale, he really helps us think through strategy to be able to scale successfully,” Schulman added.

The executive team stands to see a lucrative return from their stakes. Schulman owns a 2.2% stake in the company. His current shares are worth $97 million while the stock is trading at $46 per share. Yesterday, he explained to Fortune that he saw the company’s investment in manufacturing infrastructure and its plans for store expansion as paths to profitability. “I think public markets are always welcoming to long-term, sustainable category-defining growth stories,” he said.

As a whole, the 15-member executive team owns about a 14% stake combined. CFO Tricia Tolivar owns 123,723 shares, which is less than 1% of the company but now worth about $5.7 million with shares trading at $46. Cofounder of Cava Theodoros Xenohristos, who serves on the firm’s board and holds the role of chief concept officer, holds the most shares after Shaich and Schulman. His stake is now worth $25.8 million.

Institutional investors also stand to see a windfall from the IPO. The equity investment firm Invus is Cava’s largest shareholder through its affiliate company Artal, owning a 29% stake that is worth a staggering $1.5 billion after the IPO as shares trade at $46. SWaN & Legend Venture Partners owns 10% of the company post IPO, and its shares are worth $515.9 million.

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