MOD Pizza announced plans to go public Monday, becoming the eighth restaurant to do so this year.
The Seattle-based fast casual said it confidentially submitted a draft to the SEC relating to the proposed IPO of its common stock. The number of shares to be offered and the price range for the IPO haven't been determined yet.
Co-founder and CEO Scott Svenson described MOD's COVID journey as an "initial dramatic decline in sales followed by a gradual recovery." The chain reported systemwide sales of $461 million in 2020, a 5 percent decline compared to 2019, and company net revenue of $388 million, a 1 percent decrease year-over-year.
Digital revenue—which represented 40 percent of sales in 2020—soared 275 percent, with online/app transactions increasing 216 percent. Those rising numbers were fueled by the integration of Uber Eats and Postmates, and improvement of in-app features, like curbside pickup and native delivery. The pizza chain's loyalty program surpassed 2 million members, almost doubling 2019's total, and accounted for more than 20 percent of sales.
Despite the pandemic, MOD opened a net of 22 stores—19 corporate and three franchises—and finished 2020 with 490 locations. The chain reached the 500-unit mark in May. To spark even more growth, MOD finished 2020 by added DBMC Restaurants as its 10th franchise partner. The deal calls for 30 stores over the next seven years in Alabama, Louisiana, Mississippi, and Tennessee.
MOD is the 57th biggest quick-service restaurant in the nation in terms of U.S. sales, according to QSR 50 data, and the largest among pizza fast casuals. The chain posted an AUV of just under $1 million last year.
The brand was founded in 2008 by serial entrepreneurs Scott and Ally Svenson. The chain is known for its artisan-style pizzas and salads that can be created with a combination of more than 30 toppings.
The pizza chain's IPO news follows announcements from Krispy Kreme, Dutch Bros Coffee, Portillo's, First Watch, Sweetgreen, Panera Brands, and Fogo de Chão.