Portillo's revealed in a filing Tuesday that it wants to raise up to $405 million in its IPO.
The 67-unit chain is selling 20.27 million shares, with underwriters having the option to purchase up to an additional 3.04 million shares. At a price of $17 to $20, Portillo's would raise between $344.6 million to $405.4 million. At the high end of that range, Portillo's would be valued at roughly $1.42 billion. The Wall Street Journal reported in July that the chain was seeking to be valued between $2.5 billion and $3 billion. Dick Portillo, who founded the company in 1963, sold it to Berkshire Partners in $2014 for approximately $1 billion.
Following the offering, Portillo's will have Class A and Class B Stock. Holders of Class A will have 28 percent of the voting power, or 33 percent if underwriters exercise their option. The chain will be listed on the Nasdaq Global Select Market under the symbol PTLO.
The chain reported an industry-leading AUV of $7.9 million, and a restaurant-level adjusted EBITDA margin of 28.6 percent. Total revenue is expected to push past $500 million this year, up from $455 million in 2020 and $479 million in 2019. Through the 12 months ending June 27, the average store earned $4.9 million in the drive-thru, $1.9 million for dine-in, and $850,000 through delivery. Portillo's hopes to grow its unit count by 10 percent annually and expand in and around its home base of Chicago. The chain thinks it can surpass 600 locations in the next 25 years.
Portillo's will be the fourth food and beverage chain to reach the stock market this year, following Krispy Kreme, Dutch Bros Coffee, and First Watch. Better-for-you concept Sweetgreen plans to go public, as well.
Jefferies, Morgan Stanley, BofA Securities and Piper Sandler are acting as lead joint book-running managers and representatives for the proposed offering. Baird, UBS Investment Bank and William Blair are also acting as lead book-running managers for the proposed offering. Guggenheim Securities, Stifel, Loop Capital Markets and Ramirez & Co., Inc. are acting as co-managers for the proposed offering.