Report: Jimmy John's Sets Sights On IPO
Jimmy John's Franchise, LLC is eyeing an IPO that could value the gourmet sandwich chain at more than $2 billion, according to Reuters.
Citing sources, Reuters noted that Jimmy John's is discussing a potential IPO with investment banks to serve as underwriters. Shares of the company could debut on the stock market for the first time as soon as this year.
According to Reuters' sources, the company has an annual earnings before interest, tax, depreciation and amortization of roughly $150 million. The company has around 2,000 locations, most of which are franchised.
Investors have demonstrated a healthy appetite for new listings of restaurants, especially those involved in the "fast casual" category with a focus on fresh ingredients, unique menu items and a commitment towards sustainability.
According to Jimmy John's website, restaurants bake bread in-house every day and served fresh while meat and veggies are sliced fresh in-house everyday. The turkey is "real turkey," the roast beef is "real roast beef" with no additives, no vegetable-based fillers and no "fake stuff."
One of the more recent IPO success stories is Shake Shack Inc (NYSE: SHAK). The company originally priced its IPO at $21 the day before its IPO and closed at $45.90 after its first day of trading in early 2015. Shares eventually traded higher to its 52-week high of $96.75.
On the other hand, shares of Noodles & Co (NASDAQ: NDLS) also saw a surge following its IPO debut. The company initially priced its shares at $18 but investors shunned the company after it failed to live up to the initial hype as shares hit an all-time low of $14.38 on Tuesday.
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