By Twin Peaks – an American chain of sports bars and restaurants goes live on Nasdaq in what is the first restaurant debut of the new year on Thursday.
The company’s debut holds significance as it could offer cues on what the initial public offering (IPO) market looks like for restaurant companies in 2025.
“Last year was a stronger year than 2023, and we’re expecting 2025 to have more IPOs than 2024. That could include more consumer IPOs,” according to Renaissance vice president Nick Einhorn.
That said, following are the two restaurant companies that could be next in line to IPO this year.
Panera Brands
Reimann family has been interested in unloading Panera Brands for several years.
Panera previously attempted to go public with an investment from the special purpose acquisition company of Danny Meyer in 2021.
However, the deal was abandoned a year later due to market conditions.
Then in late 2023, the parent company of Panera Bread signalled plans of going public in a confidential filing. It even announced a leadership change last year that it said was related to preparing for an eventual IPO.
But then came the consumer slowdown that again delayed its plans of a debut.
However, if Twin Peaks signals demand for restaurant IPOs in the coming days and weeks, Panera Brands may finally proceed with its long-due plans of listing on a US stock exchange in 2025.
At writing, Panera Brands generates close to $5.0 billion in annual revenue.
Inspire Brands
Another name investors should closely watch as a potential next in going public is Inspire Brands – the owner of Baskin Robins, Buffalo Wild Wings, and Dunkin’.
In 2018, an American private equity firm, Roark Capital, used a bunch of its acquisitions to put together a restaurant conglomerate that’s known today as Inspire Brands.
Inspire Brands currently has well over 32,000 restaurants worldwide that together generate some $30 billion in annual sales.
Last year, reports indicated that Roark Capital has engaged with advisors for a potential initial public offering of Inspire Brands at a valuation of about $20 billion. But it’s been nothing but silence ever since.
Nonetheless, Pitchbook continues to count it among the top 50 private equity-backed companies that could IPO in 2025.
“Private equity backers will want to exit their position eventually, and IPOs are often a way to do that,” argued Renaissance Capital’s Nick Einhorn in a recent statement.
Stability in its leadership team further corroborates that Inspire Brands could have a seamless debut if it opts for one.
Paul Brown – its chief executive co-founded the company in 2018 while its chief of finance Kate Jaspon was a key personnel behind the initial public offering of Dunkin’ in 2011.
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