Wall Street Loves Dallas-Based Chain Restaurants
Two Dallas-based chains hit up Wall Street for some capital recently, and they both came out of the gates on an upward trend. Wingstop and Fogo de Chao both went public this month, and both Dallas-based companies are now trading significantly higher than their initial public offering.
Fogo de Chao has numerous locations in the Dallas area and across the country. Customers pay a fixed price (around $50 depending on the location) for access to a never ending procession of grilled meats and an extensive salad bar. In trading last week the stock soared 30 percent above an initial offering of $20. The money is to be used to open new restaurants, with a goal of 100 locations in the U.S. eventually.
Wingstop's plan for the new cash was hardly as attractive (the company says they will use the money to pay down debt) but that didn't stop Wall Street from jumping on board. Spokesperson Troy Aikman sold his shares immediately, netting more than he earned during his first four years as a quarterback for the Dallas Cowboys. That stock gained more than 60 percent during its first day of trading.
Both stocks have held on to most of their gains, and since chain restaurants are performing well on Wall Street it's hard not to wonder which Dallas-based restaurant group will be next to sell out. Breastaurant growth is outpacing the entire restaurant industry and Twin Peaks looks like a prime pick, as long as they can keep the biker gangs at bay.
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