Bojangles, Chicken Chain, Files For IPO Under The Ticker Symbol ‘BOJA’
Bojangles has filed for IPO and intends to list on the NASDAQ. The chicken and biscuit chain will trade under the ticker symbol “BOJA”. It is currently unclear how many shares the company will be offering in the IPO, but it issued nominal IPO fundraiser target of $100 million. However, the final size of the planned IPO could differ from the nominal value provided for the registration purpose.
Bojangles is based in North Carolina and operates 622 restaurant outlets. The company has been around since 1977. Last year, the company generated over $1 billion in revenue, with breakfast servings accounting for 38% of the overall revenue in the year. Breakfaster is a major differentiator between Bojangles and its peers. Many of its rivals do not offer breakfast, but the company does it all day long, and the business is lucrative.
In addition to company-owned restaurants, Bojangles also operates through franchise arrangements, which accounted for the bulk of revenue it generated in 2014. While company-owned restaurants brought in $406.8 million in revenue in 2014, franchises generated $628.6 million, leading to the more than $1 billion in overall sales. Net income last year was $26.1 million.
Focus on breakfast
The company continues to look to breakfast offering for more growth. Breakfast is one area that the company has tapped consistent success because it helps in building customer loyalty, which further boosts other segments of the business. Bojangles cited that breakfast market will be worth about $35.7 billion by 2018 compared to $27.4 billion in 2013.
McDonald’s Corporation (NYSE:MCD) is another restaurant name that is gradually moving into breakfast serving. The company has cited logistical hiccups in its breakfast rollout, but the rollout is expected to gain momentum under the new CEO, Steve Easterbrook.
The planned Bojangles IPO will follow that of Shake Shack Inc (NYSE:SHAK), another high profile restaurant name that has gone public this year. Shake Shack went public on January 30 and its shares have risen 1.85%, slower than the broader market. The Like Bojangles, Shake Shack also serves breakfast at three locations out of its 63 outlets.
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