Franchise Articles

Posted by Tim Gilboy on 2015-06-15

What's Going on With Food Franchise IPO's?

WImage titlehat’s been going on with fast food IPO’s over the past year?? Seriously - it doesn’t seem to make a whole lot of sense to me (or to some others it seems). I mean I get it, the food market is going strong, but still this seems crazy. After Wingstop’s Friday IPO success there are now 8 food companies who have had their IPO’s since the start of 2014.  And now they have seen their share prices rise by an average of 57.2% on the first day! The craze hasn’t ended after the first day though. Overall these stocks have gone up an average of 107.3%.

So what does all this craziness mean for you and me? I’m not going to try to address the financial market side of things because there aImage titlere people out there who are much more qualified than I am to discuss these matters . But, I do think there is some significance in the overall trend that we’ve been seeing here. These strong IPO performances from food companies reflect the overall belief that they are in a strong financial position across the board, buoyed by evidence of strong long term growth and expansion from companies like Chipotle. These long term growth prospects can be seen by potential franchisees as an indication that the food market will be going strong into the future. Overall I would take this as just one of another set of signs that being a food company franchisee is a good decision for you in the long run. So if you’re interested in opening a food franchise of your own take a look at our list of those available in your area here.

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