A quickly growing Fort Worth convenience store chain has filed to raise $100 million in an initial public offering, according to a Securities and Exchange Commission filing Tuesday.
Yesway Inc., which plans to list on the Nasdaq under ticker symbol YSWY, said the number of Class A shares and price range of the offering have not yet been determined and are dependent on market conditions. Class B stock will also be offered for pre-IPO investors.
The $100 million figure is often listed as a placeholder by companies filing initial registration documents to go public.
Since its founding in 2015, Yesway has racked up 403 stores in the Southwest and Midwest, including locations in Texas, New Mexico and South Dakota. The convenience brand acquired the 302-store Allsup’s Convenience Store chain, known for its deep-fried burritos, in November 2019 in a deal the company said led to $42 million in annual cost savings.
“We offer our customers a go-to destination for compelling foodservice and convenience products with a neighborly and enjoyable shopping experience,” Yesway said in the SEC filing. “We believe this value proposition has resulted in strong customer loyalty, as evidenced by our track record of positive same-store sales growth.”
As of 2020, private equity firm Brookwood Financial Partners LLC, the owner and founder of Yesway, raised $642 million in equity for the company, as well as $237 million in sale-leaseback proceeds. The firm announced its latest investment of $235 million in the chain last October.
The company reported a profit of $26.6 million in 2020, according to the SEC filing. Its net income of $2.3 million for the first six months of this year fell from $15.4 million during the same time period in 2020 following an expense related to debt refinancing.
Revenue through the first six months of 2021 totaled $815 million, up nearly 14% from a year prior.
Yesway, which moved its headquarters to North Texas in 2020, declined to comment on the filing.
The chain is one of many competing in the expansive U.S. convenience retail industry, which included 150,000 stores nationwide at the end of 2020, according to data from the National Association of Convenience Stores. Irving-based competitor 7-Eleven boasted over 9,000 stores last year.
Yesway has more than 5,350 employees, 230 of whom are in corporate and field management roles. The company said it plans future acquisitions in smaller towns with a “lower concentration” of national convenience store chains.