Nando’s is one of the most popular restaurant chains in the UK, South Africa and many other countries. It also has a growing popularity in the United States. Devoted fans have their loyalty cards and their favorite menu items, but the ultimate gift for a fan of this chain would be to own stocks. The question is, is it even possible to buy shares in Nando’s, and if so, how?
Can you Buy Shares in Nando’s
You can’t buy shares in Nando’s just yet, but that might change very soon. As we have discussed many times on Buy Shares In, many of the world’s biggest chains are owned by parent companies. These can be private or public, but they tend to own multiple chains so even when they are public it’s not always possible to buy stock directly.
For instance, Chick-Fil-A is private and will likely remain so. KFC, on the other hand, is publicly listed. However, it’s listed under the name of parent company Yum! Brands, who also owns Taco Bell, Pizza Hut and WingStreet. So, you can buy shares in KFC’s parent company, but the price of those shares would be just as dependent on the failure and success of several other major chains.
With Nando’s, the situation is closer to that of Chick-Fil-A. It is owned by a single person and if they were to make Nando’s shares available, it would be listed independently. The owner, Dick Enthoven, is a South African billionaire. He does own other major investments, but Nando’s is kept separate from these.
When to Buy Nando’s Shares
It’s hard to say when Nando’s stock will be available or even if it will. However, in 2017 there was a lot of talk of it going public. If this were to happen then the London Stock Exchange would be a good market for it and it would likely attract a lot of interest. It’s a popular chain with a lot of growth potential (you only need to look at the success of other chicken restaurant chains to see that) and a huge reputation in countries like the UK and South Africa.
As of late 2017 Nando’s stock is not yet listed and the talk of it being listed has died down a little since all of the hype and speculation at the beginning of the year. But it’s a very real possibility, certainly more so than other sought-after stock like Aldi and Lidl, which will likely remain in the hands of their private owners for many years and even decades to come.
Big restaurant chains tend to perform very well on the stock exchange because they are brands that everyone recognizes and appreciates, they earn a consistent profit based on an established reputation, there is a lot of room for adaptability, and when they offer quality but low-priced food like Nando’s does, they tend to perform well during both boom times and recessions.
Potential Nando’s IPO
It’s hard to say when the Nando’s IPO will launch or what the value will be. We have tried to gauge a potential Nando’s stock price by looking at the value of the company and its revenue below. However, it’s a little more complicated than this.
That value and that revenue will certainly dictate the early interest, but the reputation of Nando’s will also play a big role. They may set the price higher to account for this, in which case the price probably won’t climb as high as it would if they set a reasonable rate.
Potential Nando’s Share Price
Nando’s was said to account for half of the owner’s $1.1 billion fortune, which means that $600 million would be a fair estimate. In fact, this is probably a little on the conservative side when you consider just how many Nando’s restaurants are.
There are over 1,200 Nando’s locations worldwide and it can be found in more than 30 countries, with the main focus being on the UK and South African market. When you consider that it was first opened in South Africa in 1980, this is a long way to come in a very short time and it’s still moving forward at a rapid pace, growing into one of the biggest fast food chains to have been founded outside the United States (let’s be honest, it will likely never match the likes of Subway).
The turnover for Nando’s is said to equate to around $600 million a year, of which about $50 million is pre-tax profit. Once you factor in the assets, the growth and the power of the brand’s reputation, it’s easy to see why the worth could tip towards the $1 billion mark by the time an actual Nando’s share price is available.
Key Nando’s Locations
So, just where are the biggest Nando’s locations and the biggest earning ones? Well, a large majority of these can be found in the UK, where everywhere from Nando’s Park Royal and Nando’s Canary Wharf, to locations in Walsall, Hanley and Crewe are able to pull in a lot of money and a lot of interest.
As for intentional Nando’s locations, South Africa leads the way but they also have restaurants in many other African countries, including Zambia, Swaziland, Namibia and Zimbabwe. In Asia they have spread from India and Bangladesh to the UAE and Saudi Arabia and in North America you will find Nando’s locations in Canada and the United States.
Here are a few more key locations and read for the brand:
Enfield is best known to the wider world as the home of the Enfield Haunting, but it’s also a popular and populated area of the UK capital where this brand seems to be flourishing.
The beauty of a chain like Nando’s is that it is able to transcend wealth barriers. It is popular with those on a budget and it is also popular with many rich and famous celebrities. This can also be seen across the UK’s north-south divide, as the brand has been able to conquer all areas of the country with equal success.
Nando’s United States
There is a growing number of Nando’s locations in the US. If Nando’s shares do become available then they can be popular based purely on the success of the brand outside the US. But a great way for investors to profit from Nando’s shares would be to buy before they are truly well known in the US and then watch the dividends roll in as they take the American market by storm.
This is not going to be easy as they essentially need to build their brand and reputation from scratch, but they do have the money and experience needed and they also have a good product. The issues they face is that the US is a much more saturated market. There are countless chains with more than 1,000 locations here, from fast growers like Jimmy John’s to established leaders like Starbucks. This is why growth has been slow and why it has been limited to handful of states, including over a dozen Nando’s locations in Maryland and Illinois, as well as ones in Virginia and D.C.
It would be interesting to see how this brand fared in the US south, where fried chicken chains like Popeyes, KFC and many more have flourished. It would be a tough market to crack, but if they could manage it then Nando’s value would be propelled to new heights.
Nando’s South Africa
There were over 100 Nando’s locations in South Africa just over a decade after they launched the very first one. There are now many more, with the chain spreading into all major towns and cities and becoming a major part of South African culture.
Nando’s Rest of the World
Ironically for a chain that sells Portuguese and Mozambique inspired flavors, there are no Nando’s locations in Portugal or Mozambique. But there are also no Taco Bell locations in Mexico—so this is not new.
There is a lot of Europe still left to conquer, a lot of African countries that are waiting for their own restaurants and then you have Russia and China. In other words, the world is at their feet and if Nando’s stock does become available, we will be one of the first in line to buy it.