Bojangles’ S-1 Analysis (NASDAQ:BOJA)

Exchange: NASDAQ

Proposed Symbol: BOJA

Employees: 8800

CEO: Clifton Rutledge

Offer Amount: $122.2 mm

No. of Shares to be sold in IPO: 6.25 mm

No. of Shares Outstanding: 35.9 mm

Price Range: $15-17

Mkt Cap at Midpoint of Proposed range: $574.4 mm

Expected IPO Date: 05/08/15

Description from S-1: “Bojangles’ is a highly differentiated and growing restaurant operator and franchisor dedicated to serving customers high-quality, craveable food made from our Southern recipes. Over the last 38 years, we believe Bojangles’ has become an iconic brand with a cult-like following due to our famous, made-from-scratch biscuits baked every 20 minutes, our fresh, never-frozen bone-in fried chicken, our unique fixin’s and our Legendary Iced Tea. We believe we offer fast-casual quality food combined with quick-service speed, convenience and value. While we serve our full menu of craveable food across all dayparts, we are especially known by customers for our breakfast offerings and generate, on average, over $650,000 annually per company-operated restaurant before 11:00 a.m.”

From the S-1

Underwriters:

  • Lead Underwriter: B of A Merrill Lynch, Wells Fargo Securities, Jefferies
  • Co-Managers: Barclays, Goldman Sachs, Piper Jaffray, William Blair, KeyBanc Capital Markets, RBC Capital Markets, Stephens, SunTrust Robinson Humphrey

Competitors: Popeye’s Louisiana Kitchen (PLKI), El Pollo Loco (LOCO), Buffalo Wild Wings (BWLD), McDonald’s (MCD), Chick-fil-a, Zaxby’s, Chipotle’s (CMG), Zoe’s Kitchen (ZOES), Panera (PNRA), Shake Shack (SHAK), and other fast casual/fast food restaurants.

Other Notes

  • Based in Charlotte, NC
  • Founded in 1977
  • 632 total locations, all located in the U.S.
    • only has locations in 10 states — plenty of room for both domestic and international growth and expansion
  • the most similar recent IPO is SHAK, which is up 220% from its IPO price.
  • If BOJA shares price at $17 (top of the range), then the P/S ratio is a mere 1.4, whereas with SHAK it is 7, and LOCO has a P/S of 3, making BOJA undervalued with respect to the broader sector.
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