BOJANGLES IPO???
anyone buying this?
Company has been around for over 30+ years and today in 2015 they finally go public???
This is the top of the market, as you can see there are companies rushing to get their IPO out now that the market has been at historical highs and well why not go public with so many trillions rushing through the market because of BUBBLE bernanke and friends...all that cash has to go somewhere so why not take a 30+ year old chicken and biscuit company and list them on the exchange and be done with it, raise a few hundred million dollars and ride the trend...Im sure this runs up 50% at the open, I mean why wouldn't it, its a Chicken and Biscuit company....
ENLARGE
Bojangles positions itself as straddling both the quick-service restaurant category and the fast-casual segment. PHOTO: SARA CALDWELL/THE AUGUSTA CHRONICLE/ZUMA PRESS
By
CORRIE DRIEBUSCH
May 7, 2015 6:20 p.m. ET
Bojangles Inc., the southeastern chain known for its chicken ’n biscuits, priced its IPO at $19 a share, at the high end of expectations.
In other IPO news, Fitbit Inc., a maker of wearable fitness tracking devices, announced Thursday its plans for an IPO in a regulatory filing. It will trade under the symbol “FIT.”
In its IPO, Bojangles, which has 622 restaurants primarily in the Southeast, raised $147 million by selling 7.75 million shares at $19 apiece. That total doesn’t count a so-called overallotment option, which gives underwriters the opportunity to sell additional shares under certain circumstances.
Bojangles had planned to sell 7.75 million shares at $18 to $19 a share, according to a regulatory filing, a range that had already been increased once. That gives the restaurant chain, which opened its first restaurant in Charlotte, N.C., in 1977, a market capitalization of $682 million.
Restaurant stocks traditionally have performed well in market debuts. In the past 10 years, the average one-day pop for restaurant stocks topped 40%, according to Dealogic.
Shares of Shake Shack Inc. and Habit Restaurants Inc., the last two restaurants to go public, more than doubled in their stock-market debuts. The restaurant IPO prior to those burger chains, and what many investors view as Bojangles’ closest peer, was El Pollo Loco Holdings Inc. Its stock jumped 60% in its first day of trading.
‘In the past 10 years, the average one-day pop for restaurant stocks topped 40%.’
—Source: Dealogic
“The fast-casual category has done a great job in terms of growth,” said Kevin McCarthy, a senior analyst covering gaming, lodging, leisure and restaurants at Neuberger Berman. “Everyone is now trying to paint themselves as millennial, fast casual.”
In its prospectus, Bojangles positions itself as straddling both the quick-service restaurant category and the fast-casual segment. While 80% of its revenue is generated through the drive-thru and carry-out, implying a quick-service label, the chain boasts of fast-casual attributes such as “traditional cooking methods” that include serving bone-in fried chicken that is never frozen and the “freshness of its ingredients.”
Analysts and money managers counter that Bojangles is not in the same category as traditional fast-casual restaurants such as Chipotle Mexican Grill Inc. But they said they like the company nonetheless.
“They’re really good at what they do,” said Troy Huff, a senior research analyst who covers consumer sectors for Nuveen Asset Management’s small cap core and growth teams. He added that the chain’s strategy of serving breakfast, lunch and dinner and keeping breakfast an option all day long is “helpful for margins and returns.”
Bojangles is scheduled to begin trading on the Nasdaq Stock Market on Friday under the symbol “BOJA.” The deal is being led by Bank of America Corp, Wells Fargo & Co. and Jefferies.
anyone buying this?
Company has been around for over 30+ years and today in 2015 they finally go public???
This is the top of the market, as you can see there are companies rushing to get their IPO out now that the market has been at historical highs and well why not go public with so many trillions rushing through the market because of BUBBLE bernanke and friends...all that cash has to go somewhere so why not take a 30+ year old chicken and biscuit company and list them on the exchange and be done with it, raise a few hundred million dollars and ride the trend...Im sure this runs up 50% at the open, I mean why wouldn't it, its a Chicken and Biscuit company....
Bojangles positions itself as straddling both the quick-service restaurant category and the fast-casual segment. PHOTO: SARA CALDWELL/THE AUGUSTA CHRONICLE/ZUMA PRESS
By
CORRIE DRIEBUSCH
May 7, 2015 6:20 p.m. ET
Bojangles Inc., the southeastern chain known for its chicken ’n biscuits, priced its IPO at $19 a share, at the high end of expectations.
In other IPO news, Fitbit Inc., a maker of wearable fitness tracking devices, announced Thursday its plans for an IPO in a regulatory filing. It will trade under the symbol “FIT.”
In its IPO, Bojangles, which has 622 restaurants primarily in the Southeast, raised $147 million by selling 7.75 million shares at $19 apiece. That total doesn’t count a so-called overallotment option, which gives underwriters the opportunity to sell additional shares under certain circumstances.
Bojangles had planned to sell 7.75 million shares at $18 to $19 a share, according to a regulatory filing, a range that had already been increased once. That gives the restaurant chain, which opened its first restaurant in Charlotte, N.C., in 1977, a market capitalization of $682 million.
Restaurant stocks traditionally have performed well in market debuts. In the past 10 years, the average one-day pop for restaurant stocks topped 40%, according to Dealogic.
Shares of Shake Shack Inc. and Habit Restaurants Inc., the last two restaurants to go public, more than doubled in their stock-market debuts. The restaurant IPO prior to those burger chains, and what many investors view as Bojangles’ closest peer, was El Pollo Loco Holdings Inc. Its stock jumped 60% in its first day of trading.
‘In the past 10 years, the average one-day pop for restaurant stocks topped 40%.’
—Source: Dealogic
“The fast-casual category has done a great job in terms of growth,” said Kevin McCarthy, a senior analyst covering gaming, lodging, leisure and restaurants at Neuberger Berman. “Everyone is now trying to paint themselves as millennial, fast casual.”
In its prospectus, Bojangles positions itself as straddling both the quick-service restaurant category and the fast-casual segment. While 80% of its revenue is generated through the drive-thru and carry-out, implying a quick-service label, the chain boasts of fast-casual attributes such as “traditional cooking methods” that include serving bone-in fried chicken that is never frozen and the “freshness of its ingredients.”
Analysts and money managers counter that Bojangles is not in the same category as traditional fast-casual restaurants such as Chipotle Mexican Grill Inc. But they said they like the company nonetheless.
“They’re really good at what they do,” said Troy Huff, a senior research analyst who covers consumer sectors for Nuveen Asset Management’s small cap core and growth teams. He added that the chain’s strategy of serving breakfast, lunch and dinner and keeping breakfast an option all day long is “helpful for margins and returns.”
Bojangles is scheduled to begin trading on the Nasdaq Stock Market on Friday under the symbol “BOJA.” The deal is being led by Bank of America Corp, Wells Fargo & Co. and Jefferies.
