Wingstop Inc. (NASDAQ: WING) has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company plans to offer 5.75 million shares, with an overallotment option for an additional 862,500 shares for $24 per share. At this price, the entire offering is valued up to $158.7 million.
The underwriters for the offering are Morgan Stanley, Jefferies, Baird, Goldman Sachs, Barclays and Wells Fargo.
This company is a high-growth franchisor and operator of restaurants that specialize in cooked-to-order, hand-sauced and tossed chicken wings. It is the largest fast casual chicken wings-focused restaurant chain in the world, and it has demonstrated strong, consistent growth on a national scale. Wingstop has sold roughly 4 billion wings over the past 20 years, as it grew to 845 restaurants across 39 states and seven countries at the end of December 2015.
Increasing customer loyalty and brand awareness have enabled the company to deliver positive domestic same-store sales for 12 consecutive years through 2015, while growing the restaurant count at a 14.9% compound annual growth rate over the same timeframe.
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In terms of the financial data, Wingstop detailed in the filing:
On a year-over-year basis, for fiscal year 2015, our total revenue increased by 15.6% to $78.0 million, our Adjusted EBITDA increased by 18.5% to $28.9 million, our Adjusted EBITDA margin increased 90 basis points to 37.0%, and our net income increased by 12.5% to $10.1 million.
Wingstop will not collect any of the net proceeds from this offering. Instead, all the net proceeds will go to the selling stockholders.
So far year to date, Wingstop has outperformed the market, with the stock up about 6%.
Shares of Wingstop closed Tuesday down about 4% at $24.25, with a consensus analyst price target of $30.57 and a post-IPO trading range of $20.31 to $35.96.
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