Monday, July 31, 2017

Burger Chain’s Stock Market Offering A $15 Million Bet To Fund National Expansion

Celebrity Chef Bobby Flay plans to offer Wall Street shares of his burger business up to the public. The move, announced July 17, 2017, is intended to give Flay a financial boost as those buying in drive up the stock of his fast-casual Bobby’s Burger Palace chain in hopes of an international expansion. According to CNBC, there are just 17 locations of the chain that competes with Shake Shack, Five Guys and Smashburger. Todd Katz, formerly Chief Financial Officer of Quest Integrity, says that the transformation into a publicly-traded company takes time but will often provide the capital needed to foot the bill of expansion – in Flay’s case, a major footprint growth. The CNBC report adds that Flay’s restaurant chain isn’t as recognizable as Shake Shake, which also went public on the stock market, but investors could jump on the chance to own shares of something associated with the Food Network star.

Todd Katz’s time with Quest Integrity, a pipeline inspection company, was capped in 2015 marked by the sale of the company to a publicly-traded company. Total proceeds of the sale amounted to $77 million by the end of 2015. Starting in 2008, Todd Katz took Quest Integrity from a start-up operation to a company boasting 285 employees and making worldwide revenue of $75 million in 2016. Companies as profitable as this are an enticing offer for those in the stock market. Potential investors, in exchange for their purchase of shares, help boost the bottom line of the company that’s gone public. According to the CNBC report, Flay hopes to bring in about $15 million to help cover the costs of the expansion.

Todd Katz, formerly of Quest Integrity, spent decades overseeing mergers and acquisitions at financial institutions across the country. While in Palo Alto and San Francisco, Katz managed a team of investment bankers and attorneys as the team looked into acquisitions, mergers, divestitures and spin-offs. While in Los Angeles, Katz assisted with new business origination, including new business presentations and complex financial modeling. As you can see, there are professionals like Todd Katz on the other end of businesses such as Flay’s looking out for prudent fiscal moves. While only time will tell if Flay will see his rather small chain of burger joints spread across the country, it’s a sure thing that investors will be keeping a close eye on the initial public offering.