Wingstop Inc. raised its initial public offering price Tuesday, to $16–$18 per share, from the $12–$14 per share that it revealed last week.
In amended documents filed with the Securities and Exchange Commission, the Dallas-based quick-service operator said it was registering 5.8 million shares. At the upper end of the pricing range, the company would raise nearly $104.4 million. Wingstop is principally owned by Atlanta-based Roark Capital Partners.
In the SEC filing, Wingstop said it estimated, “based upon an assumed initial public offering price of $17 per share (which is the midpoint of the price range set forth on the cover page of this prospectus), we will receive proceeds from the offering of approximately $30.9 million after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.”
Wingstop said it intended to use the proceeds from the offering to repay debt and pay fees related to terminating its management agreement with Roark Capital Management LLC.
Wingstop said in the SEC filing that average volumes at domestic units in 2014 were near $1.1 million. Average restaurants are about 1,700 square feet and have a domestic carryout mix of about 75 percent.
Morgan Stanley, Jefferies and Baird are among the underwriters for the IPO. The company intends to list its common stock on the Nasdaq under the symbol "WING."
Wingstop is the fifth restaurant company to make or consider a public offering this year. In April, Dallas-based Fogo de Chao Inc., the Brazilian steakhouse operator, filed for an IPO of 4.4 million shares, priced at between $16 and $18 a share. It plans to trade on the Nasdaq with the ticker symbol “FOGO.”
On Jan. 30, New York City-based Shake Shack Inc. made its public debut, rising in one day to a valuation of nearly $1.8 billion. Valuations can change precipitously after a stock debuts.
In May, Charlotte, N.C.-based Bojangles Inc. raised more than $147 million in its IPO, selling nearly 7.8 million shares priced at $19 a share.
Also in May, Champaign, Ill.-based Jimmy John’s Gourmet Sandwiches was reportedly preparing an IPO.
Wingstop ranked No. 3 in the most recent Nation’s Restaurant News top 10 growth chains, with $540.2 million in U.S. systemwide sales, an increase of 19.8 percent from 2012. In 2013, Wingstop opened 74 new restaurants. Estimated sales per domestic unit in NRN’s census were $962,000, rising 9.1 percent from 2012.
Wingstop was founded in 1994 and purchased by Roark Capital in 2010. The chain has units in 36 states. The company began franchising abroad in 2009, and now has 41 units in Indonesia, Mexico, the Philippines, Russia, Singapore and the United Arab Emirates.