Dive Brief:
- P.F. Chang's is reportedly in talks with potential advisors about an initial public offering, according to Bloomberg, which cited people with knowledge of the matter. A listing could happen as early as this year and the company could have a valuation of at least $1 billion, according to the publication.
- "We do not comment on rumors or speculation," P.F. Chang's said in an emailed statement. "As a company, we're constantly looking for ways to strengthen our business in the most efficient and effective manner possible. We value our relationship with our employees, guests and vendors — and will always communicate with them directly whenever there is news or information to report."
- The potential IPO comes two years after P.F. Chang's was acquired by TriArtisan Capital Advisors and Paulson & Co. for an estimated $700 million.
Dive Insight:
If P.F. Chang's were to go public, this wouldn't be the first time. The chain originally went public in 1998, five years after the company was established. It was taken private in 2012 when it was acquired by an affiliate of Centerbridge Partners for $1.1 billion.
The company appears to be a more diversified brand compared when it was last public, and it has a larger off-premise footprint. In 2020, the chain tested a P.F. Chang's To Go concept to provide takeout, delivery and catering at smaller buildings in high-density urban markets, and now plans to expand the model.
Despite this shift, 2020 was still a difficult year for the company. Its 2020 sales dropped an estimated 34.5% to $601 million, according to Technomic data. The chain received between $5 million and $10 million in Paycheck Protection Program loans last April.
But P.F Chang's off-premise strategy appears to be helping the brand turn a corner. It will open 50 To Go units within its network by 2022. As of the end of June, the company had 10 To Go locations open, including eight units previously open in Chicago and New York City. The company also enhanced its dine-in experience in March through a partnership with Wisely to allow customers to use a waitlist and reserve tables through Google.
Becoming a public company could support these plans further through additional capital, which may also help the company test new ways of engaging with customers. P.F. Chang's would join a growing list of restaurant brands that may go public this year, including Portillo's, Sweetgreen, Krispy Kreme and Dutch Bros Coffee. Investors are increasingly interested in the restaurant industry following surging demand as dining room restrictions ease across the country, which may be contributing to the spike in IPOs.
