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Bethesda’s Cava buying Zoe’s Kitchen for $300 million

By Jeff Clabaugh

WASHINGTON — Fast-growing Bethesda-based restaurant chain Cava Group is about to grow exponentially with an agreement to acquire Plano, Texas-based Mediterranean restaurant chain Zoe’s Kitchen.

Cava has grown to 66 locations and Zoe’s Kitchen has 261. The combined companies will have 327 restaurants in 24 states.

Under terms of the acquisition, Cava Group will spend $300 million to pay $12.75 per share in cash for Zoe’s. It was a 33 percent premium to publicly-traded Zoe’s Thursday closing price. The news sent its stock (NYSE: ZOES) up by that much in Friday trading.

Cava is paying for the acquisition with investment from Act III Holdings, an investment vehicle created by Ron Shaich, the founder and chairman of Panera Bread.

“Together, these two brands are united by a shared heritage and passion for exceptional Mediterranean cuisine,”  said Cava chief executive Brett Schulman. “Now with the addition of Zoe’s Kitchen, we will be able to broaden our geographic footprint and meet the needs of even more guests — whether in Bethesda or Birmingham, Plano or Pasadena.”

The company’s restaurants include Cava and the more formal Cava Mezze. The company was founded by Maryland natives Ted Xenohristos, Ike Grigoropoulos and Dimitri Moshovitis in 2006.

Cava Mezze also runs Sugo Osteria in Potomac and Brusco Luncheonette in Baltimore.

Dips and spreads from Cava can be found in more than 200 Whole Foods stores.

Massachusetts court hears arguments in lawsuit alleging Meta designed apps to be addictive to kids

By The Associated Press
BOSTON (AP) — Massachusetts' highest court heard oral arguments Friday in the state's lawsuit arguing that Meta designed features on Facebook and Instagram to make them addictive to young users. The lawsuit, filed in 2023 by Attorney General Andrea Campbell, alleges that Meta did this to make a profit and that its actions affected hundreds of thousands of teenagers in Massachusetts who use the social media platforms. “We are making claims based only on the tools that Meta has developed because its own research shows they encourage addiction to the platform in a variety of ways,” said State Solicitor David Kravitz, adding that the state's claim has nothing to do the company's algorithms or failure to moderate content. Meta said Friday that it strongly disagrees with the allegations and is “confident the evidence will show our longstanding commitment to supporting young people.” Its attorney, Mark Mosier, argued in court that the lawsuit “would impose liabilities for performing traditional publishing functions” and that its actions are protected by the First Amendment.
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