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