Restaurant News Hubb
Advertisement
  • Home
  • News
  • Restaurants & Services
  • Contact us
No Result
View All Result
  • Home
  • News
  • Restaurants & Services
  • Contact us
No Result
View All Result
Restaurant News Hubb
No Result
View All Result
Home Restaurants & Services

Fogo de Chao in rare form ahead of planned IPO

admin by admin
December 21, 2022
in Restaurants & Services


Fogo de Chao reported AUVs of $10.1 million for the 12 months ending in September. / Photo courtesy of Fogo de Chao

By all accounts, Brazilian steakhouse chain Fogo de Chao was doing quite well last November when it filed paperwork to go public.

One year later, the chain known for skewered meats carved tableside appears to be doing even better. 

The Plano, Texas-based chain in November updated its federal filing documents with results from a bountiful 2022. Here’s a look at the top-line highlights:

  • Total revenue increased nearly 43% year over year, to $517 million, for the 12 months ending in Q3 2022.
  • Average unit volumes expanded to $10.1 million, from $7.9 million a year ago.
  • Traffic increased 12.3%, marking the chain’s seventh straight year of transaction growth, excluding 2020.
  • Same-store sales rose 16.4%.

The chain also opened six new corporate restaurants and one international franchised location, with four more slated for Q4. The new stores, located in a variety of markets, were performing beyond Fogo’s expectations, according to the filing, adding to its confidence that it can eventually have at least 300 U.S. restaurants—nearly 6 times its current footprint of 53. 

And with average unit volumes entering double-digits, the chain finds itself in rare air among full-service chains. Just two casual-dining brands—Carmine’s and The Cheesecake Factory—had AUVs higher than $10 million last year, according to data from Restaurant Business sister company Technomic. 

Fogo’s profits, though down slightly from 2021, remained near or above 2019 figures. Operating margin was 10.6%, down from 11.2%, and restaurant-contribution margin was 26.7%, down from 28.8%. 

The chain has yet to announce the timing of its IPO. A representative had not responded to a question about its plans by publication time.

Founded in Brazil in 1979 and brought stateside in 1997, Fogo de Chao serves grilled, seasoned meats cooked churrasco-style on skewers and then carved at the table by the chefs, known as gauchos. Customers can try up to 16 different meats in an all-you-can eat format for a fixed price starting at $54.95. This year, it revamped its bar menu to appeal to customers looking for lighter fare. 

Fogo went public once before, in 2015, but struggled to win over investors. It was sold to private-equity group Rhone Capital for $560 million in 2018.

It will look to return to Wall Street amid a strong period for steakhouse concepts, which have benefited from the release of pent-up demand coming out of the pandemic. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.





Source link

Tags: earningsNews
Previous Post

Will Taco Bell make fries a permanent menu addition?QSR Web

Next Post

Grub Street’s 20 Most-Read Stories of 2022

Next Post

Grub Street’s 20 Most-Read Stories of 2022

Recommended

Author Kashana Cauley’s Grub Street Diet

January 20, 2023

Pumpkin spice, iced drinks drive Starbucks Q4 salesFast Casual

November 4, 2022

Where to Find the Best Trini Roti in NYC

January 23, 2023

Anti-Streetery Lawsuit Dismissed in NYC

October 5, 2022

Don't miss it

Restaurants & Services

QSR ordering: Millennials, Gen Zers prefer kiosks over in-person

February 4, 2023
News

Koibito Poke opening 7 locations by summer

February 4, 2023
Restaurants & Services

Restaurant hiring accelerates sharply in January

February 3, 2023
News

Caleb Walker Announced as New Owner of Chronic Tacos Laguna Niguel

February 3, 2023
Restaurants & Services

Modern uniforms rely on fit, function

February 3, 2023

restaurant-20

© 2022 Restaurant News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Restaurants & Services
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • News
  • Restaurants & Services
  • Contact us

© 2022 Restaurent News Hubb All rights reserved.