Although consumer sentiment has changed in recent months, a number of IPO candidates are looking to tap the market on the back of strong brand recognition and loyal customer bases.

Consumer retail has seen a reopening with reasonable valuations and execution, while the segment long had been defined by clear “haves” and “have nots.” Bob’s Discount Furniture and Once Upon a Farm both showed the brand recognition formula can work, according to an ECM banker, but they came before the Iran war.

Companies attempting a US listing need to be on trend, with a product that resonates and where investors can buy into the resilience of demand. “There is a bid for recognizable stories, but only where there is a credible return profile attached,” the banker said.

Part of that appeal comes from exposure. Larger consumer names with strong brands can offer access to segments that are not widely represented in public indices, particularly where there is a retail element and sufficient market capitalization to support liquidity.

The ECM banker pointed to the importance of “white space” stories, where growth is driven by expansion into underpenetrated markets with visible runway. In consumer retail, this means the requirement is simple: the product has to work. Where it does, investors can underwrite growth through expansion.

If a retail business can show that its store footprint can increase by 20% to 40% over a defined period, and that unit economics remain intact, that alone can support a forward-looking valuation framework.

The banker pointed to On Holding as an example of a business that has performed well in public markets. Its model combines global revenue streams with a growth trajectory that still appears early relative to incumbents, making it a rare consumer story that has translated into sustained investor support.

Some of the companies preparing to list are looking to tap into that dynamic. Blackstone-backed Jersey Mike’s has engaged advisers to explore an IPO, with a potential third-quarter listing expected to raise more than USD 1bn at a valuation of USD 12bn or more.

One investor said the name carries strong appeal given its brand and the expectation that retail demand could support trading in the near term, reflecting a market where recognizable consumer names can still generate momentum at launch.

Enthusiasm is not without limits. The same investor cautioned that the underlying business is more complex than the headline suggests, noting that the sandwich segment is competitive and operationally demanding. The timing of an IPO after Blackstone’s investment in November 2024 also raises questions about how much of the growth story has already been realized.

Near-term performance may be supported by demand, but sustaining that performance will depend on execution, the investor added, noting that this dynamic applies across the broader consumer pipeline.

Some areas of consumer remain particularly exposed to sudden changes in the economy. The ECM banker pointed to the restaurant space as filled with examples where execution has fallen short, making it a challenging area for public market investors.

The question remains whether the concept can be delivered consistently at scale, rather than simply working well in its current footprint.

For investors, particularly long-only funds, the attraction lies in the visibility of growth over time. In many cases, investors are effectively underwriting a rollout story, where value creation depends on disciplined, repeatable expansion rather than one-off momentum.

That framework is visible across the current pipeline, which combines brand-led growth stories with private equity exits.

Elliott Investment Management has issued requests for proposals to banks for global coordinator roles on a potential IPO of Waterstones and Barnes & Noble Education, with both the US and London seen as viable venues.

Inspire Brands, backed by Roark Capital, could also move toward a listing that may raise around USD 2bn before the end of 2026.

Meanwhile, Dessert Holdings is exploring a sale or IPO by Bain Capital at a valuation of more than USD 3bn, while Mammoth Brands is working with banks on a potential listing in the second half of 2026.

Some longer-term candidates also fit the profile investors are looking for. Permira’s Reformation is viewed as a business with a clear growth opportunity, supported by modest marketing spend, strong word-of-mouth and improving profitability, one of the bankers said.

That combination aligns with what investors are prioritizing: businesses that can scale without relying on heavy customer acquisition spend and that tap into durable consumer trends such as fitness, healthy living, and self-care.

Still, expectations need to be managed. Shares of Once Upon a Farm fell shortly after its first earnings update as a public company this month, after the organic kids snacks maker forecast slowing sales growth for this year.

The reaction showed that beyond brand recognition, investors still require visibility on forward performance and will reassess quickly if that visibility weakens.

“There are meaningful public buyers in these deals, there’s a universe of active investors who want good companies that grow, even if they are smaller but they have built an enthusiastic cohort, and that they can grow with,” another banker said.