Just four months after investing $ 400 million, local chain Torchy’s Tacos is reportedly pursuing an IPO that would value the company at $ 1 billion.
Citing unnamed sources, Bloomberg News Service reported March 14th that Austin-based Torchy’s is considering an IPO – perhaps this year – that could raise $ 300 million. However, the plans for the IPO are not yet complete. Torchy’s and its major investors will stay informed of the possible IPO.
Last month, the Austin Business Journal reported that the company operated 83 restaurants in the United States and had targeted 100 locations by the end of 2021. Michael Rypka founded Torchy’s in 2006 as an Austin Food Truck. The proceeds from an IPO could further fuel the chain’s growth.
Torchy announced in November that it had acquired $ 400 million in venture capital from the private equity firm General Atlantic, the main owner of the Taco chain, along with investment firm D1 Capital Partners, investment manager T. Rowe Price and the hedge funds Lone Pine Capital and XN had collected. Rypka and other members of the original group of owners have also deposited funds.
Torchy’s – the proud home of “damn good” tacos – wouldn’t be the only publicly traded taco supplier in Austin.
In 2012, the Tex-Mex chain Chuy’s went public in an initial public offering valued at nearly $ 80 million. Chuy posted $ 321 million in revenue last year, up from $ 426.4 million in 2019. Revenue in the same store declined 22.1 percent from 2019 due to pandemic standstills. As of December 27, Chuy’s operated 92 restaurants in 17 states.