Editor’s note: This article was updated on Sept. 29 to correct the ticker symbol for First Watch stock.
Among the latest initial public offerings (IPO) to hit the market is the upcoming First Watch IPO. Investors in what will be FWRG stock appear to be intrigued by the growth potential of this restaurant chain right now.
Indeed, as a sector that has been hit hard by the pandemic, it’s expected that restaurant stocks could continue to soar in the quarters to come. As patrons resume their pre-Covid-19 lifestyles, going out for brunch at a favorite local joint is once again becoming a way of life. For investors in this upcoming First Watch IPO, this recovery thesis will be on full display.
Like fellow coffee chain Dutch Bros (NYSE:BROS), which recently went public, investors may be looking to get ahead of what could be a very strong start for FWRG stock. Should investors continue to hold the same appetite for brunch spots as they do for regional coffee chains, this IPO could be a big hit.
Let’s dive into some of the details of this upcoming IPO investors may want to be aware of.
What to Know About the Upcoming First Watch IPO
According to a recent press release, First Watch has set its IPO range at the $17-$20 level. The company is looking to raise approximately $160 million-$189 million as a result of this offering. Accordingly, the company will be looking to repay debt and recapitalize its business as it expands in this post-pandemic environment.
Investors will get a chance at grabbing a slice of what has been a popular brunch chain across 28 states. The company has more than 400 locations and has 88 franchised locations. Expectations are that 32 net new openings will take place in 2021.
Thus, this company appears to be a high-leverage play on the economic recovery so many expect to see. The company has noted that it reached pre-pandemic sales levels in March of this year, growing same-restaurant sales 17% over 2019 levels as of August.
Currently, a hard date appears to not yet have been set for the IPO. However, investors looking to get into what could be the hottest upcoming IPO will want to keep an eye on the news flow for First Watch from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.