SAN FRANCISCO — DoorDash, a technology-based food delivery company, debuted on the New York Stock Exchange on Wednesday, Dec. 9 offering its initial public offering at $102 per share, which was above its previous range of $90 to $95. The company closed its first day of trading with an 86 percent increase in pricing to $189.51, for a total valuation of $60.2 billion, or 17 times revenue. The San Francisco-based door-to-door delivery service focuses primarily on restaurant deliveries, which resulted in a 268 percent revenue growth in the third quarter, up to $879 million, from the previous year. Additionally, during the first nine months of 2020, DoorDash’s order volume soared to $16.5 billion, from $5.5 billion last year. According to the company’s prospectus, it has 390,000 merchants on its platform, ranging from fast-food chains like Chick-fil-A, Chipotle and McDonald’s to upscale restaurants that have been forced to rely on delivery services during the COVID-19 pandemic. The company has rapidly expanded its business and services to meet the needs of customers during the pandemic and has implemented practices and strategies that reduced its losses, resulting in profits on every order.
SEATTLE — Starbucks (NASDAQ: SBUX) has predicted a resurgence in its cafes and customer demand for its coffee by 2022, forecasting a growth of more than 20 percent by fiscal 2022. With this news, shares of the Seattle-based coffee roaster and retailer jumped more than 4 percent in extended trading. The stock, which has a market value of $122 billion, has increased 18 percent so far this year. Pat Grismer, CFO, reaffirmed the company’s fiscal 2021 forecast with adjusted earnings per share of $2.70 to $2.90 at the company biennial investor day. In 2023 and 2024, Starbucks expects to hit long-term growth targets with adjusted earnings per share growth of 10 percent to 12 percent. Starbucks also is adjusting its forecast for ongoing long-term revenue growth by increasing it to a range of 8 percent to 10 percent, upgrading its 2018 prediction of 7 percent to 9 percent. The company is projecting a net new unit growth of 6 percent worldwide as it aims for 55,000 cafes globally by 2030, with a 3 percent growth in the United States and a low-teens net unit growth rate for China. Currently, the company has nearly 33,000 stores worldwide.
LANSING, MICH. — The Michigan Department of Health and Human Services (MDHHS) has extended its order restricting indoor social gatherings and group activities by 12 days through Dec. 20. The department says the extension will enable it to determine the full impact of the Thanksgiving holiday on the spread of COVID-19 across the state. Under the order, residents are urged to avoid indoor gatherings, with only two households gathering inside at any given time. Bars and restaurants must remain closed for dine-in service, but can remain open for outdoor dining, carryout and delivery. Gyms are open for individual exercise with mandatory masking, but casinos, movie theaters and group exercise classes remain closed. Professional and college sports meeting “extraordinary standards for risk mitigation” may continue without spectators. Colleges, universities and high schools will continue with remote learning. There will be no in-person classes. MDHHS will monitor the percentage of hospital beds with COVID-19 patients, the number of COVID-19 cases and the positivity rate when determining whether to reopen at the end of the 12 days. Last week, a federal judge in West Michigan refused to block the state health department’s ban on indoor dining in restaurants and bars. The Michigan Restaurant …
PLANO, TEXAS — Mooyah Burgers, Fries & Shakes, a Plano-based fast casual concept, will open 10 new restaurants throughout the metroplex, an expansion that is expected to create about 250 new jobs. All 10 of these locations will feature the brand’s new prototype with new dining zones, digital menus, a grab-and-go bottled beverage fridge and to-go shelving. Mooyah currently operates about 75 restaurants across 23 states.
BATAVIA, ILL. — JLL Capital Markets has brokered the $2.5 million sale of a Raising Cane’s Chicken Fingers ground lease in Batavia within suburban Chicago. The 3,343-square-foot, single-tenant retail building sits on one acre at 1998 McKee St. Construction of the building was completed this year. Alex Sharrin and Alex Geanakos of JLL represented the seller, Kensington Development Partners. A family trust was the buyer. Raising Cane’s has more than 520 restaurants in 28 states.
FULLERTON, CALIF. — Calbay Development has completed the disposition of a single-tenant restaurant building located at 1101 S. Harbor Blvd. in Fullerton. A Los Angeles-based high-net-worth buyer acquired the property for $6.2 million, or $2,067 per square foot. Constructed in 2020, the 3,000-square-foot property has a fully entitled drive-thru. Starbucks Coffee occupies the building and recently signed a 20-year, absolute, triple-net ground lease with no termination rights for the asset. Adam Friedlander of JLL Retail Capital Markets represented the seller in the deal.
ATHENS, GA. AND NEW YORK — Goldman Sachs Merchant Banking Division has agreed to purchase a “significant stake” in Athens-based Zaxby’s, with plans to grow the quick-service restaurant chain’s footprint into new markets. Terms of the financing were not disclosed, but the deal is expected to close by the end of 2020. Zaxby’s, known for its chicken fingers, wings and signature sauces, has more than 900 locations in 17 states, primarily in the Southeast. Zaxby’s is a privately held company that childhood friends Zach McLeroy and Tony Townley founded in Statesboro, Ga., in 1990. The founders hope the investment from Goldman Sachs will grow the regional chain into a national brand. Morgan Stanley & Co. LLC and Stephens Inc. served as financial advisors to Zaxby’s. King & Spalding LLP and Fortson, Bentley and Griffin P.A. served as legal advisors to Zaxby’s. Weil, Gotshal & Manges LLP served as legal advisor and Goldman Sachs served as financial advisor to Goldman Sachs Merchant Banking.
Developer/Owners/Investors Panel: (Clockwise from top left) Chris Hake, Thompson Thrift; Jenny Redlin, Partner Engineering and Science, Inc.; Joshua Simon, SimonCRE; Jim Pederson, Pederson Group (joining by phone); Mike Kallner, RED Development; Judi Butterworth, Orion Investment Real Estate. The “Phoenix Retail Outlook — How is the Phoenix Market Responding to COVID-19?” webinar, hosted by Shopping Center Business and Western Real Estate Business, covers the impacts of COVID-19 and how retail experts are bringing creativity to challenging situations. Learn what retailers, restaurant owners and developers need to thrive, plus what our panelists anticipate for retail in the near future. See a list of some topics covered below: How are Phoenix area retailers, restaurants and developers adapting to the COVID-19 environment? What do they need to succeed? How will Phoenix retail rents and property values be impacted? What are the predictions for retail vacancy rates in the coming year? What will be the impact on new development in the near term? What do retailers and retail property owners need to consider to position themselves for recovery? What opportunities do Phoenix retail tenants, developers investors see in a post-pandemic market? Developer/Owners/Investors Panelists: Chris Hake, Thompson Thrift Jenny Redlin, Partner Engineering and Science, Inc. Joshua Simon, SimonCRE Jim Pederson, Pederson Group Mike …
SANTA CLARA, CALIF. — Despite shelter-in-place mandates and temporary closures due to COVID-19, Westfield US has opened 42 stores and restaurants this year at Westfield Valley Fair, a 2.2 million-square-foot Bay Area shopping and lifestyle destination located at 2855 Stevens Creek Blvd. in Santa Clara. Twenty-two of the new tenants have opened since March, with 15 new retail and restaurant leases signed and foot traffic increasing more than 10 percent week-over-week since the center reopened in for retail operations in June. New tenants and milestones include: The completion of an expanded Luxury Collection that now features more than 45 retailers, including Bvlgari, Golden Goose, Gucci, Jimmy Choo, Montblanc, Tiffany & Co. and Versace. Additionally, Christian Louboutin and Panerai have signed leases to join the collection in the near future. The openings of a flagship Apple store, Lucid Studio from Lucid Motors, Peloton, AESOP, Zadig & Voltaire, Sandro, Maje and Anne Fontaine. New tenants for The Digital District including Tempo and Brik + Clik, Capital One Café, Polestar, Reiss and Dr. Martens. A revitalized Restaurant Collection with expanded outdoor dining options and new restaurants, including the first Northern California location of King’s Fish House, Shake Shack, Silicon Valley’s first Salt & …
SAN DIEGO — The San Diego City Council has unanimously approved an exclusive negotiating agreement with the Padres Development Team to negotiate terms for the previously announced acquisition and redevelopment of Tailgate Park into East Village Quarter. The site is located outside Petco Park, which Major League Baseball’s San Diego Padres call home. The Padres Development Team, including the San Diego Padres, Tishman Speyer and Ascendant Capital Partners, was selected during a public request for proposals process. The development team’s vision for East Village Quarter includes residential space, 50,000 square feet of neighborhood-serving retail, 236,000 square feet of public spaces, 1.4 million square feet of office space targeted to technology and biotechnology companies, and 1,600 parking spaces. According to media reports, the development will cost $1.4 billion. “We are excited to take another step forward to revitalize Tailgate Park and further transform the Ballpark District and downtown San Diego,” says Erik Greupner, president of business operations for the San Diego Padres. “We look forward to finalizing a deal with the City of San Diego that will result in the creation of a vibrant, inclusive, mixed-use district in East Village.”