NEW YORK (MarketWatch) — Chicken-and-biscuit restaurant chain Bojangles’ Inc. said Wednesday it plans to offer 8.9 million shares at a range of $18 to $19 a pop in its initial public offering. The North Carolina-based company has tapped Bank of America Merrill Lynch, Wells Fargo Securities, and Jefferies as lead book runners on the deal. The company is planning to list on the Nasdaq exchange under the ticker symbol “BOJA.”
Here are six things to know about Bojangles’:
Bojangles’ menu hasn’t changed much since it opened its first outlet in Charlotte, N.C., in 1977, according to its IPO prospectus. The company now boasts 622 stores across 10 states and Washington, D.C., but is still famous for its bone-in fried chicken, its buttery biscuits and its home-brewed — sorry, that’s home-steeped — ice tea.
It is very U.S. focused
Bojangles’ is very much a domestic U.S. operation. It currently operates in Alabama, Washington, D.C., Florida, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia. Internationally, it has three restaurants, all of them located in Honduras.
It is bigger than you think
The prospectus reveals that the chain had $1 billion in annual systemwide sales in 2014. It has benefited from demographics — since 2000, the population growth rate in its markets has exceeded the national average.
According to the U.S. Census Bureau, growth in the Georgia, North Carolina, South Carolina, Virginia and Tennessee populations from 2000 to 2013 was on average 18.8%, compared with 12.0% growth for the entire U.S. over the same period.
It has a diversified ‘daypart’ mix
The company divides its day into five parts — breakfast, lunch, snacks, dinner and after-dinner. It offers its breakfast menu all day, but still says it made 38% of its 2014 revenue before 11 a.m. Its prospectus emphasizes its “high-quality craveable items” and value for money. The average check at company-operated restaurants in 2014 was $6.68.
It will not receive any IPO proceeds
All of the common stock on offer in the IPO is being sold by selling stockholders. That means the company won’t receive any proceeds from the sale of shares, including any shares sold if the underwriters exercise their green shoe option.
Don’t rely on a dividend
The company isn’t planning to pay a dividend in the foreseeable future, according to the prospectus. All cash flow will be used to expand the business.
The company believes it is in the early stages of a growth story, after expanding the number of restaurants to 622 at end 2014 from 508 at end 2011. Bojangles’ believes its total potential in its current base is more than 1,400 locations, and across the U.S., it has the potential for more than 3,500 locations.
View more information: https://www.marketwatch.com/story/6-things-to-know-about-bojangles-ahead-of-its-ipo-2015-04-07