Fogo de Chao to go public
April 21, 2015
by Erica Shaffer
Fogo de Chao hopes its signature churrasco-prepared meats and service model attract investors.
DALLAS – Fogo de Chao, a chain of Brazilian-style steakhouses, filed for an initial public offering with the Securities and Exchange Commission. The company did not report the number of shares to be offered or the expected price; however the aggregate offering price is $75 million. The company plans to list its shares on the Nasdaq under the symbol “FOGO”.
Fogo de Chao specializes in fire-roasting premium meats using the churrasco cooking technique which originated in southern Brazil. The Brazilian-style steakhouse offers up to 20 different cuts of meat.
Brothers Jair and Arri Coser, both chefs, opened the first Fogo de Chao in 1979 in Porto Alegre, Brazil. The Coser brothers opened a second location in Sao Paulo in 1987 before opening a location in Addison, Texas, a Dallas suburb, in 1997. The company operates 26 restaurants in the United States and nine in Brazil.
The company was incorporated under the name Brasa Inc. in May 2012 after Thomas H. Lee Partners and other investors acquired the company for $400 million. The company later changed its name to Fogo de Chao, Inc.
Revenue for the company grew 19.6 percent to $262.3 million from fiscal 2013 to fiscal 2014. Net income advanced to $17.6 million in fiscal 2014 from a net loss of $0.9 million in fiscal.
“Our continuous service model allows customization and consumer engagement since our guests control the variety and quantity of their food and the pace of their dining experience,” the company said in its SEC filing. “Through the combination of our authentic Brazilian cuisine, differentiated service model, prix fixe menu and engaging hospitality in an upscale restaurant atmosphere, we believe our brand delivers a differentiated dining experience relative to other specialty and fine-dining concepts and offers our guests a compelling value proposition.”