Country Style Cooking Restaurant Chain (NYSE:CCSC) is a fast food restaurant chain based out of China. The company sells "everyday" Chinese food from 101 locations as of June 2010, however the company plans to expand to over 130 by the end of 2010. The majority of the company's stores are in the Chongqing municipality and the Sichuan province. They hope to expand their reach to other geographic locations.
The restaurant chain's average store experiences an average 1,600 customers per day. The Country Style Cooking Restaurant Chain hopes to take advantage of the rise of China's middle class as well as expansion into new geographic locations to fuel growth. The food service industry in China has grown from 1.1 trillion RMB in 2004 to 2 trillion RMB in 2009. CCSC expects that this will continue to occur as the middle class continues to grow. In particular, the company predicts that the increase in disposable income and the rise in desire for convenience and time saving will further drive customers.
The company's initial public offering of stock on the NYSE and occurred on September 27, 2010. Its initial price range was $12-$14, but the price range was revised upwardly to be $14-$16. Despite this revision, the stock priced still above that range at $16.50. The company sold 5M ADS shares and raised $82.5M. The lead underwriters of the deal were Bank of America (BAC) and Credit Suisse Group (CS).
The company's total revenue increased from 231M RMB in 2008 to 494M RMB in 2009. This consists of a 114% growth in revenue year over year. Net income has also increased from 27M RMB in 2008 to 45M RMB in 2009, or a 66.67% increase. This corresponds to a net income of $6.6M.