As Portillo’s, a regional Chicago company best known for hot dogs and Italian beef sandwiches, prepares to begin trading on NASDAQ on Thursday, it pegged its share price at $ 20 per share late Wednesday, the upper end of its planned range.
When it goes public, the 67-unit Fast Casual, based in Oak Brook, Illinois, plans to sell nearly 20.3 million shares under the ticker symbol PTLO. It has also given a 30-day option to purchase up to just over 3 million more shares at the IPO price.
Portillo’s announced earlier this month that it would price its stock at $ 17 and $ 20 per share. The 58-year-old brand’s decision to pay a higher price shows their confidence in their product.
The chain previously announced that it intends to use the funds from its IPO to pay off the majority of its $ 470 million debt.
Portillo’s goes public on Thursday, making it the fourth restaurant chain to do so this year alongside Krispy Kreme, Dutch Bros and First Watch. Sweetgreen also announced that it would go public.
The regional brand, which was founded in 1963 by Dick Portillo in a trailer with no running water outside of Chicago, revealed aggressive growth plans in its application, stating that it intends to reach 600 locations by 2046 and is “well positioned for global growth” in the future . “
Berkshire Partners, a private equity group, paid around $ 1 billion in 2014 for the then 38-part brand. Six months later, Portillo bought back some of the chain’s real estate and signed a 20-year lease for 18 of its eponymous restaurants and two grocery commissioners.
Portillo’s now has locations in seven states.
Drive-Thrus of 3.4 million AUVs totaled $ 9.1 million at locations around Portillo’s home market.
This winter, Portillo plans to open a half-size restaurant in Joliet, Illinois, with three lanes of traffic but no indoor restaurant. The 3,750 square meter prototype “opens up a lot of new avenues for us,” said the chain’s vice president for real estate.