Torchy's Tacos taps Morgan Stanley, JPMorgan for IPO

[DALLAS] Texas-based restaurant chain Torchy's Tacos is working with advisers for its planned initial public offering that could happen as soon as this year, according to people with knowledge of the matter.

Torchy's has tapped banks including Morgan Stanley and Bank of America Corp for an IPO, said the people, who asked not to be identified because the information is private. JPMorgan Chase & Co is also working with Torchy's, one of the people said.

The company, with more than 75 locations in 10 states, could raise about US$300 million and be valued at about US$1 billion in a listing, the people said.

Torchy's, backed by investment firm General Atlantic, hasn't made a final decision on going public and the company's plans could still change, the people said.

A representative for Torchy's didn't respond to requests for comment. Representatives for Morgan Stanley, JPMorgan, Bank of America and General Atlantic declined to comment.

Torchy's, the business name of Success Foods Management Group LLC, formed a strategic partnership with growth investor General Atlantic in 2017. It sold an additional stake to a group backed by General Atlantic for about US$400 million last year amid the coronavirus pandemic that shut down most of the country's indoor dining.

Other investors in Torchy's include D1 Capital Partners, T Rowe Price, Lone Pine Capital and XN, according to a statement at the time.

Torchy's opened its first permanent restaurant in Austin, after starting as a food trailer in 2006. It opened 12 new restaurants in 2020.

BLOOMBERG