Published September 14, 2015

What’s Behind the Rise of Restaurant IPOs?

With restaurant industry sales increasing and the overall economy continuing to gain strength in the years after the recession, many fast casual restaurant concepts and chains are taking the leap and going public on Wall Street. There have been a number of IPOs even in just the last 3 years, and many more fast casual chains are poised to join them with publicly traded success. So, what makes fast casuals such a hot item for investors, and what keeps them successful once they do go public? This post from Nation’s Restaurant News has all the details.

Most of the fast casuals that have recently gone public have a few things in common, including: being backed by private equity firms or other investors, having a unique and customer-friendly concept, and continued growth plans with new locations. Having previous backing by private equity firms can help a fast casual chain prepare for the “real world” of public trading by giving the chain confidence, financial intelligence and discipline in streamlining their concept. Furthermore, diners demand a lot more from restaurant concepts these days than they ever have before, from fresher, healthier ingredients to affordable prices. For more insight into the success of restaurant IPOs, continue reading.

Read the full article here: Why IPOs Are Sizzling: 3 Ingredients for Growth