Bravo Brio Restaurant Group, which operates the BRAVO! Cucina Italiana and BRIO Tuscan Grille restaurant brands, raised $140 million by offering 10 million shares at $14, at the low end of its $14 to $16 range. The company originally planned to sell 8.3 million shares with the upsized offering consisting of all secondary shares. At its $14 offer price, Bravio Brio has a fully diluted market value of $287 million. The Columbus, OH-based restaurant chain generated $329 million in sales and $17 million in net income over the last twelve months. Bravo Brio Restaurant Group is listing on the NASDAQ and will open for trading on Thursday under the symbol BBRG. Jefferies & Co., Piper Jaffray, and Wells Fargo Securities acted as lead managers on the deal.
U.S. consumer IPOs have struggled year-to-date
With 85 restaurants across 28 states, Bravo Brio represents the fourth US-based consumer IPO in 2010 and follows on the heels of last week's $65 million offering from women's fashion chain Body Central (BODY). Gordman's Stores (GMAN), a low price fashion retailer in the Midwest, and apparel retailer Express (EXPR), a former unit of Limited Brands, both completed IPOs earlier this year. Including Bravo Brio, all four IPOs were backed by private equity firms. Body Central (+0.2%) and Gordman's Stores (+1%) are up only slightly from their respective offer prices, while Express has lost 12% since its offering back on May 12. The average IPO is up 15.9% year-to-date. Another US consumer IPO is on tap for tomorrow night with handbag designer Vera Bradley (VRA) planning to sell 11 million shares at a range of $14-$16.
First U.S. restaurant IPO in over 3 years
Bravo Brio became the first US-based restaurant IPO since Einstein Noah Restaurant Group (BAGL) raised $90 million in June 2007. The last meaningful IPO activity from the North American restaurant industry was back in 2006, which produced nearly a half dozen restaurant new issues including Chipotle Mexican Grill (CMG), Morton's Restaurant (MRT), Tim Hortons (THI), Burger King (BKC), and Carrols Restaurant Group (TAST). Fast-growing mexican chain Chipotle Mexican Grill (+344%) has been the best performer of this class, followed by quick service chain Tim Hortons (+41%) and Burger King (+17%), which recently agreed to be taken private again.
