Cava, the Mediterranean fast-casual restaurant brand, debuted on the New York Stock Exchange June 15. The popular brand, offering 14.44 million shares of its common stock, priced the IPO at $22 per share, a move that would value the company at $2.46 billion.
Cava opened for trading, however, at $42, almost double its IPO price, which was already at the higher end of its target range.
DON'T MISS: Microsoft Nears All-Time Closing High Amid AI-Powered Rally
Cava said that it's planning on using the proceeds from the offering to open new restaurant locations, with remaining funds going for "general corporate purposes," something that may include paying off loans.
Cava was founded in 2006 and opened its first location in 2011. The brand now has 236 locations in the U.S. and is planning on expanding to 1,000 by 2032.
And CNBC "Mad Money" host Jim Cramer thinks it'll be an explosive stock.
"I expect Cava to absolutely roar on Thursday," Cramer said. "I'm betting the IPO prices above the proposed range. Then I wouldn't be surprised if it doubles from those levels very quickly."
Despite this hearty prediction, Cramer said that he doesn't think the surge will last, and cautioned potential investors about jumping in at the wrong time.
More Jim Cramer:
- Jim Cramer Says One Sector Has Single-Handedly Saved the Markets
- Inverse Cramer ETF Founder Explains Why He Bets Against Jim Cramer
- Jim Cramer Loves These Seven High-Performing Tech Stocks
"Although I wouldn't expect the newly elevated price to last. Unless you can get a piece of the actual IPO on the IPO, I recommend holding off on this one," Cramer said. "While I don't like Cava the restaurant, I do like Cava the business. It's just that I'm wary of paying too much for Cava, the stock."
"If the IPO's a hit on Thursday," he added, "you might want to wait for it to cool off before you even think of pulling the trigger."
