Should You Buy This Hot IPO Restaurant Stock?
With the S 500 and Nasdaq Composite still off their peaks, the market for initial public offerings has been rather quiet in 2022 and throughout 2023. But this all changed recently when Cava Group (NYSE: CAVA) went public on June 15. Its shares closed higher by more than 100% after the first trading day, a clear sign of investors' appetite.
Even if the upside might be sizable, owning newly public companies is a risky endeavor. That's because there is still so much that needs to be proven before investors put their hard-earned capital into these businesses. Nonetheless, should you buy this hot new IPO restaurant stock?
For those who aren't familiar with the company, Cava is a fast-casual restaurant chain that specializes in build-your-own Mediterranean dishes. It has registered impressive growth, posting revenue of $45 million in 2016 that climbed to $564 million in 2022. As of mid-April, there were 263 locations, primarily in the East Coast region of the U.S.
Source Fool.com
