Bojangles' Prices IPO At High End Of Range, Shares Expected To Debut Trading On Friday

Investors have shown an appetite for restaurant-related stocks, and investors will get their first look at

Bojangles' Restaurants, Inc.BOJA

on Friday as shares will begin trading for the first time on the stock market. Bojangles' Restaurants has a menu that focuses on traditional Southern cooking including Cajun-style chicken and biscuits. The menu also features sandwiches, chicken wings, and breakfast items. The company was founded in 1977 by former KFC President Richard Thomas and partner Jack Fulk. The company operates 622 restaurants, mostly in the Southeast. The

Wall Street Journal noted on Thursday evening that the company has priced its IPO at $19 per share, at the high end of expectations. The company had planned to sell 7.75 million shares according to regulatory filings – valuing the company as much as $682 million. Restaurant stocks have traditionally performed well during their first day of trading. According to Dealogic, over the past 10 years, the average one-day gain or restaurant stocks topped 40 percent. Recent restaurant IPOs that are still fresh in investors' minds include Shake Shack Inc SHAK where shares more than doubled during the first day of trading. In addition, Bojangles' closest peer, El Pollo LoCo Holdings Inc LOCO spiked 60 percent in its first day of trading. "The fast-casual category has done a great job in terms of growth," Kevin McCarthy, a senior analyst covering gaming, lodging, leisure and restaurants at Neuberger Berman told The Wall Street Journal. "Everyone is now trying to paint themselves as millennial, fast casual." 80 percent of Bojangles' revenue is generated through drive-thru and carry-out orders, implying the company fits under the "quick-service" label. However, the company uses "traditional cooking methods" and uses never frozen chicken, implying it can also fit under the "fast-casual" label.