Fogo de Chão (NASDAQ: FOGO), a Brazilian fine dining steakhouse chain, just debuted on the NASDAQ stock market last Friday morning, and it’s up a staggering 30%. After pricing its initial public offering at $20 the night before, the stock price opened Friday at $26 per share. Trading under the ticker symbol "FOGO," shares are quickly creating a prestige as one of the most popular - and unexpectedly successful - IPOs of the year.
According to its IPO filing, the company has 34 restaurants in the U.S. and Brazil, and generated $262 million in revenues last year. Also, the company made a profit last year, bringing in $17 million. The restaurant intends to use its new funds to repay its outstanding debts and to pay for general corporate purposes, including restaurant development and working capital purposes. In addition, the company has huge ambitions to grow, aiming to operate 100 new U.S. locations in the future.
The restaurant, founded in 1979, has waited a long time for this rise in publicity. The business provides buffet-style services of slowly cut meat and a salad bar. In 2006, the restaurant was named one of America's top restaurants by Zagat. Fogo de Chao, meaning, "fire on the ground," truly summarizes how hot the company currently is on Wall Street.
In a year that has had many successful food IPOs, Fogo de Chão is actually not the best food IPO of 2015. 2015 that has already seen Shake Shack (NYSE: SHAK) soar 118%, Wingstop (NASDAQ: WING) rise 60%, and Canadian tea company DavidsTea (NASDAQ: DTEA) popping 42%, the Brazilian steakhouse chain has some stiff competition. However, investors seem to be bullish on it, as its unique gaucho-style cooking sets its brand apart from others in the food market.