Bojangles’ share price starts with a growth spurt

Shares of fried-chicken chain Bojangles’ made their public debut Friday, at a 40 percent increase over the IPO price.

The shares, priced at $19 Thursday, began trading Friday at $26.55.

At $19 per share, the Charlotte, North Carolina-based chain raised $147 million through its initial offering, 37 percent more than anticipated last month.

In its IPO filing, the 622-unit chain outlined an aggressive plan to grow its number of restaurants 7 to 8 percent annually, projecting a total restaurant potential of more than 3,500 locations nationwide.

With all eyes on the breakfast daypart, Bojangles’ argues it is in a strong position to expand. In 2014, the chain’s company-owned units each generated more than $650,000 in sales annually before 11 a.m., on average, or 38 percent of company restaurant revenues. 

“Our strong breakfast results make us a leader in the fastest growing daypart in the industry,” the company said in a previous securities filing. “We believe breakfast has broad customer appeal and is the most habitual daypart, which drives repeat business and customer loyalty.”

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