Financial Markets News: “TASTY” IPO to watch

| June 24, 2015 | More

If you love fine steak, then you’re likely already familiar with high-end Brazilian steakhouse Fogo de Chao. Now, for about half of the price of a meal at the fine dining establishment, you can own a share of FOGO stock. Fogo is the fourth restaurant group to go public this year and sold 4.1 million shares at around $20 each before share values rose on the day of the IPO to more than $25. The company said it expected share values to immediately go higher thanks to recent successes from Wingstop, Bojangles, and Shake Shack[1].

Fogo says that its operating model is the key to future success and growth in any economy, in large part because the steaks, while extremely high-quality, are prepared and served “Brazilian style,” meaning that gaucho chefs prepare and serve the meats in house. As a result, operating costs are fairly low because the kitchen requires minimal staffing and actual waste is also minimal. Fogo is also primed for growth, it says, with 26 outlets in the U.S. and 11 more abroad. The company expects to open approximately 100 more sites, starting with five or six more in 2015.

Do you think that restaurants like Fogo should go public? Would you consider investing?

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About the Author (Author Profile)

Carole Ellis is editor in chief of the Bryan Ellis Investing Letter. Under Carole’s leadership, the Bryan Ellis Investing Letter has grown to over 700,000 subscribers, making it one of the largest real estate newsletters in the world. Each day, Carole directly impacts the daily thinking and conversations of real estate investors worldwide by providing thought-provoking analysis and commentary on news topics relevant to serious real estate investors.

Carole has a strong background in research and in the management of respected publications. She holds a degree in English Literature from the University of Georgia, and has substantial research experience in plant biology. She is the former editor of and writer for the University of Georgia’s Research Magazine. She’s also the author of hundreds of articles and multiple books and home study courses published under the names of her clients, many of whom are well known, highly respected real estate entrepreneurs as well.

Carole makes her home in Kennesaw, Georgia with her husband Bryan and 4 children.

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Category: Financial Markets