Add Portillo’s to the growing list of chains planning and going public.
The Wall Street Journal reported Friday that the Chicago-based fast-casual will soon file a confidential draft of a registration statement with the SEC. Portillo’s, which operates more than 60 locations in nine states, is targeting between $ 2.5 billion and $ 3 billion. The brand is expected to start trading before the end of the year, the Journal said. Portillo’s is operated by private equity firm Berkshire Partners.
Portillo has used the pandemic to drive innovation and capitalize on growing trends. Last summer, Fast Casual started self-delivery to leave their four walls and bring their “world-class experience” directly to guests, said Dino Northway, Portillo’s senior manager for external restaurants, to QSR in July 2020.
“Our goal is to provide an unparalleled experience for our amazing guests, and having control of the entire experience from order to self-delivery is one way we do that,” Northway said at the time.
CONTINUE READING: Is in-house delivery the future for restaurants?
In addition, Portillo’s announced in early July that it would open Portillo’s Pick-Up, a 3,750 square meter prototype with three passageways and no dining room. There will also be a take-out area for website and app orders.
The chain was founded in 1963 by Dick Portillo. He sold the brand to Berkshire Partners for around $ 1 billion in 2014.
When Portillo officially submits, it will be the fourth chain in the past three months to announce IPO intentions. The first was Krispy Kreme in early May, a brand that was listed from 2000 to 2016 before it was bought by JAB Holding for $ 1.35 billion. The donut chain initially forecast a range of $ 21 to $ 24 per share, but eventually announced an IPO of $ 17 per share, raising $ 500 million. Krispy Kreme stock opened at $ 16.30 per share on July 1, but closed at $ 21 per share to close for the day. The brand was trading at just over $ 17 per share on Friday afternoon.
The Krispy Kreme announcement was followed by Dutch Bros Coffee and Sweetgreen. Before Dutch Bros filed the draft registration statement in confidence, Bloomberg reported that it was targeting around $ 3 billion. The coffee chain has more than 450 branches, but has set itself the goal of reaching 800 units in the next few years.
The 120-piece Sweetgreen reportedly works with Goldman Sachs. The fast casual was valued at $ 1.78 billion in January after raising $ 156 million from Durable Capital Partners. In September 2019, the chain announced that it had received $ 150 million from Lone Pine Capital and D1 Capital Partners, with the participation of True Ventures and other existing investors. Previously, the brand raised $ 200 million in a funding round led by asset management company Fidelity Investments in November 2018.
There are other restaurants that have reportedly been considering an IPO but haven’t announced any plans yet. The New York Times said in late April that JAB closed a $ 800 million refinancing for Panera that could pave the way for the company to return to the stock market. The release states that Panera may not require a traditional IPO, which opens the door for a dedicated acquisition company. JAB bought Panera in 2017 for $ 7.5 billion. Additionally, it was revealed in March that Torchy tacos was heading for an IPO, though nothing is final yet. The taco chain reportedly works with Morgan Stanley, Bank of America Corp, and JPMorgan Chase & Co.
Before Krispy Kreme, BurgerFi was the youngest chain to go public, doing so through a special acquisition company. BurgerFi and OPES Acquisition Corp. agreed a merger in June 2020 with an estimated initial enterprise value of approximately $ 143 million. The chain rang the Nasdaq bell in December 2020. In February, Fertitta Entertainment, which also owns Golden Nugget Casinos and Landry’s, agreed to join Fast Acquisition Corp. join to value the company at $ 8.6 billion.