Cava Group Inc. has sealed its $300 million deal to acquire Zoe’s Kitchen Inc.
Zoe’s Kitchen (NYSE: ZOES) will be taken private immediately, with Thanksgiving Day as the first day of operations for the combined company. Cava said the Zoe’s brand “will remain intact for the foreseeable future.”
Brett Schulman, Cava CEO, will lead the company while Zoe’s CEO Kevin Miles “will be completing his tenure.” Zoe’s under Miles’ leadership, grew to 268 locations in 20 states and roughly $340 million in annual revenue. But it was also struggling: Zoe’s Kitchen’s same-store sales, a key restaurant industry metric, fell between 7 percent and 8 percent in the first five weeks of the third quarter, according to a preliminary proxy filed Sept. 25 with the Securities and Exchange Commission.
“With this acquisition, Cava will be able to broaden our geographic footprint and meet the needs of even more guests — whether in Bethesda or Birmingham, Plano or Pasadena — who crave…Read the full story from the Washington Business Journal.