The Dallas based company Wingstop (NASDAQ:WING) has taken off in the stock market like a rocket on Friday as its shares soared on its debut. The shares of Wingstop Inc. trading on the Nasdaq under the symbol “WING” closed down at $30.59 on Friday. It began at an offering price of $19 a share.
The Chief Executive of the company Charlie Morrison said, “At the end of the day we’re very happy. I think investors are definitely interested in the growth story of Wingstop.”
Wingstop is undoubtedly one of the fastest growing chicken chains that houses 745 locations. 97 percent of the locations are owned by the franchises that have big faith in company’s progress in the market. Experts are of the belief that Wingstop can help the investors bring in a strong cash generation.
The company is looking to expand its reach in the US and location count of the company will be tripled soon. For Friday’s IPO, the company offered 2.15 million shares of stock and Roark Capital Partners came up with a 3.65 million offering. The company had been purchased by Roark in the year 2010 and it still owns more than 60 percent of the shares after the public offering.
The company had anticipated its initial public offering to be falling between $12 and $14 a share. Wingstop’s mind boggling debut in the public market has set up a high bar for other restaurant companies in North Texas who are looking to appear up in the public market.
The restaurant is based on a Brazilian theme and offers wide variety of meat options. Wingstop is expecting to rise between $67 million and $77 million in an IPO with a midpoint price of $17 a share. A private equity firm Thomas H. Lee Partners LP owns the company which will exercise its hold on 80 percent of the company after the initial public offering.