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Wingstop is the latest: $110 million+ IPO and counting


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Food couldn’t be much hotter these days, especially up-and-coming brands that are expanding nationally and going public to great fanfare. Today’s latest foodie IPO is Dallas-based Wingstop, which is on track to raise no less than $110.2 million on its first day on Wall Street.

While initial guidance suggested a price around $13/share for the up-and-coming wing slinger, it debuted at a much more impressive $19 under the symbol WING. It’s possible that another 870,000 shares could be sold due to high demand, meaning the deal could net more than $125 million when it’s all said and done.

Looking at the performance of recent restaurant IPO superstars, their healthy share price gains have extended beyond the initial offering. Shake Shack, for instance, is currently trading at nearly $80 a share after hitting the scene at $21/share.

In recent interviews, I’ve started asking experts whether they think we’re in the midst of a bubble. Thus far, nobody has said no.

What are the consequences if we are in the middle of the great mid-2010s restaurant bubble? If individual chains can’t match up to the hype long term, their shareholders and employees will bear the brunt of it, while investors become more cautious about future debuts.

With that in mind, party on, I guess, but be careful. Those of you running these newly-public companies better keep the good times coming for your own sake, and to ensure deserving chains can get the capital they need to try their hands on the big national stage.

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About This Blog

The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Laura MichaelsLaura Michaels is editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Beth EwenBeth Ewen is senior editor of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is restaurants editor at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 

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