Hot Dog Fast-Casual Chain Portillo’s Seeks $400M in IPO

Hot dogs, restaurant, chain, portollo, IPO

Hot dog restaurant chain Portillo’s is planning to sell 20.27 million shares at a range of $17 to $20 each in an initial public offering (IPO) seeking to raise as much as $400 million at an estimated valuation of $1.4 billion, according to the company’ filing with the U.S. Securities and Exchange Commission (SEC).

Backed by private-equity firm and majority stakeholder Berkshire Partners, Portillo’s is headquartered in Oak Brook, Illinois and was founded in 1963 by Richard J. Portillo. The chain operates 67 restaurants in nine states, up from 40 locations in 2015, per the filing, and has posted increasing revenue and profits despite the pandemic.

See also: Gearing up to Go Public, Portillo’s Faces Uncertain Digital Future

The restaurant specializes in Chicago-style hot dogs, burgers and Italian beef sandwiches, and has its sights set on a growth trajectory of 600 eateries over the next 25 years.

Portillo’s said that it never had to close a restaurant in its 58-year history, and when COVID-19 took hold, it sidestepped layoffs and furloughs by training staff to pivot to delivery. The chain is looking to expand its locations by 10% each year and to move beyond its core customer base in Chicago and the surrounding suburbs.

The company reported in the SEC filing that its revenue during the first six months of this year was $258 million with a $14 million profit. During the same period in 2020, revenue was $217 million with a profit of $12 million.

Read more: How Mobile Innovations Enhance the Drive-Thru

Sales at restaurants that have been open for at least two years are projected to be up 6.8% July through September over 2020, per the filing, and while there was a drop in foot traffic, the average ticket per customer was up. Portillo’s said all menu categories fared well last year, with Italian beef sandwiches comprising 23% of sales, fries and other sides at 16%, hot dogs and sausages at 14%, salads at 9%, and pasta, ribs and chicken at 4%.

The offering is being handled by Morgan Stanley, Piper Sandler and Chicago-based William Blair.