Three restaurant groups are reportedly considering initial public offerings (IPOs).
Cava group said on a Monday (February 6th) press release that it has confidentially filed a draft registration statement with the Securities and Exchange Commission (SEC) relating to a proposed IPO.
Two more restaurant groups — Fogo hospitality And Panera brands — are aiming to offer their own IPOs in the next few months, according to the Wall Street Journal (WSJ) reported Monday citing unnamed sources.
Fogo Hospitality and Panera Brands did not immediately respond to PYMNTS’ request for comment.
Cava Group said in its press release: “The total number of shares to be offered and the price range for the proposed offering have not yet been determined. The offering is subject to market and other conditions and the completion of the SEC review process.”
All three companies are monitoring whether markets are improving and, like all restaurants, have gained prominence in the eyes of investors as the sector reports modest growth and profitability — something investors are looking for have seen unprofitable companies fall in value over the past year, according to the WSJ report.
Additionally, after being tested by the pandemic, restaurants have cut costs and increased margins — something else that’s appealing to investors — and chains have benefited from the closure of many independent competitors, the report said.
Sales data from the US Census Bureau showed that Restaurant and bar sales fell 0.9% monthly in December – possibly as a result of gatherings at home over the Christmas period – and rose 16.7% year-on-year.
That figure was well above the 8.3% annual inflation rate for that category, according to the Census Bureau report.
Panera Brands considered an IPO last year but turned it down. The fast-casual group had planned to partner with a Special Purpose Acquisition Company (SPAC) to go public via IPO after 2021 Restaurants and other food and beverages (F&B) companies go public.
However, in July 2022, the company ended those plans citing a deteriorating IPO market.
“Unfortunately, the deterioration in capital market conditions over the past few months has led to a realization that an IPO may not be imminent and we therefore felt it appropriate not to renew our proposed partnership,” Panera Brands said at the time.
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