BOJANGLES IPO??? anyone buying this? Company has been around for over 30+ years and today in 2015 they finally go public??? This is the top of the market, as you can see there are companies rushing to get their IPO out now that the market has been at historical highs and well why not go public with so many trillions rushing through the market because of BUBBLE bernanke and friends...all that cash has to go somewhere so why not take a 30+ year old chicken and biscuit company and list them on the exchange and be done with it, raise a few hundred million dollars and ride the trend...Im sure this runs up 50% at the open, I mean why wouldn't it, its a Chicken and Biscuit company.... ENLARGE Bojangles positions itself as straddling both the quick-service restaurant category and the fast-casual segment. PHOTO: SARA CALDWELL/THE AUGUSTA CHRONICLE/ZUMA PRESS By CORRIE DRIEBUSCH May 7, 2015 6:20 p.m. ET Bojangles Inc., the southeastern chain known for its chicken ’n biscuits, priced its IPO at $19 a share, at the high end of expectations. In other IPO news, Fitbit Inc., a maker of wearable fitness tracking devices, announced Thursday its plans for an IPO in a regulatory filing. It will trade under the symbol “FIT.” In its IPO, Bojangles, which has 622 restaurants primarily in the Southeast, raised $147 million by selling 7.75 million shares at $19 apiece. That total doesn’t count a so-called overallotment option, which gives underwriters the opportunity to sell additional shares under certain circumstances. Bojangles had planned to sell 7.75 million shares at $18 to $19 a share, according to a regulatory filing, a range that had already been increased once. That gives the restaurant chain, which opened its first restaurant in Charlotte, N.C., in 1977, a market capitalization of $682 million. Restaurant stocks traditionally have performed well in market debuts. In the past 10 years, the average one-day pop for restaurant stocks topped 40%, according to Dealogic. Shares of Shake Shack Inc. and Habit Restaurants Inc., the last two restaurants to go public, more than doubled in their stock-market debuts. The restaurant IPO prior to those burger chains, and what many investors view as Bojangles’ closest peer, was El Pollo Loco Holdings Inc. Its stock jumped 60% in its first day of trading. ‘In the past 10 years, the average one-day pop for restaurant stocks topped 40%.’ —Source: Dealogic “The fast-casual category has done a great job in terms of growth,” said Kevin McCarthy, a senior analyst covering gaming, lodging, leisure and restaurants at Neuberger Berman. “Everyone is now trying to paint themselves as millennial, fast casual.” In its prospectus, Bojangles positions itself as straddling both the quick-service restaurant category and the fast-casual segment. While 80% of its revenue is generated through the drive-thru and carry-out, implying a quick-service label, the chain boasts of fast-casual attributes such as “traditional cooking methods” that include serving bone-in fried chicken that is never frozen and the “freshness of its ingredients.” Analysts and money managers counter that Bojangles is not in the same category as traditional fast-casual restaurants such as Chipotle Mexican Grill Inc. But they said they like the company nonetheless. “They’re really good at what they do,” said Troy Huff, a senior research analyst who covers consumer sectors for Nuveen Asset Management’s small cap core and growth teams. He added that the chain’s strategy of serving breakfast, lunch and dinner and keeping breakfast an option all day long is “helpful for margins and returns.” Bojangles is scheduled to begin trading on the Nasdaq Stock Market on Friday under the symbol “BOJA.” The deal is being led by Bank of America Corp, Wells Fargo & Co. and Jefferies.
hahaha up 44% at the open....wow, I hope the employees at Bojangles got stock options the last 30 years they worked there and are now hundred "thousandaires" or millionaires.....but probably not, why would a company you work for making minimum wage give you any option like that.....many bojangle top executives are partying hard today....
mmmmmmmm yummy plate..... you would think with as healthy as this country has become over the last 10-20 years, you know going organic, exercising, doing yoga, running 5ks, crossfit, monitoring your heart rate every 7 minutes with these new smartphones, wearing pedometers and consuming less fast food that most of these companies wouldn't even get the opportunity to go public because sales or profits would be sliding, but nooo, these companies are booming...so Im wondering how is it that we have a more Health-Conscious Consumer today than ever before yet sales of these fast food restaurants continue to climb? ??? Would you eat this bojangles food? Katie Little | CNBC Shares of fried chicken chain Bojangles rose as much as 47 percent in its debut, valuing the chicken-and-biscuits restaurant chain at nearly $1 billion. The company's initial public offering raised about $147 million, with a majority of the proceeds going to its controlling shareholder, private equity firm Advent International. The company's stock trades under the ticker "BOJA" on the Nasdaq. Advent's stake in Bojangles fell to about 74 percent after the offering from nearly 95 percent. The offering of 7.75 million shares was priced at the high end of the expected range of $18-$19 per share, which was increased from the initial $15-$17 range. Bojangles', which began in 1977, has 622 locations in the U.S. and Honduras at the end of fiscal 2014. Most locations are in the SouthIt follows the debuts of several restaurant chains this year and last. Below is a snapshot of recent restaurant IPO performanc
Ok, I think you sound like a broken record most of the time, but you're probably right that Bojangles going public is a sign of an impending market top.
Why should one buy an IPO? I buy them if I can believe in something that has great growth prospects, uses the money for the growth (not to cash out), has leadership that executes a well defined plan well. Having a great product to sell is big also. Sure there can be some fluff in the market ala SHAK. But comparing SHAK to Bo time fails to see things as they are. SHAK goes in premium locations, does 7M in sales per unit. This is not an endless market... The biscuit store is only in 10 states: http://www.bojangles.com/locations They will use the money to grow. A cheddar Bo biscuit is capable of heaven on tongue feelings, the crunch, the chew. The food is simple, easy to make. My market research says they are well trained. They only have room to expand to 40 more states and international... Gosh darn, I do believe it's Bo Time!