Bojangles Is Exploring a Sale While the Fried-Chicken Market Is Hot
A transaction could fetch upward of $1.5 billion, roughly triple what it sold for in 2019
Bojangles, the fast-food chain that specializes in fried chicken and biscuits, is working with investment bankers to potentially sell itself in a market that’s been craving restaurant and chicken companies, according to people familiar with the matter.
The details
A sale of Bojangles could fetch more than $1.5 billion, roughly three times what it sold for in a 2019 buyout, the people said. A process would be expected to draw interest from both strategic restaurant operators and other private-equity suitors.
It’s also still possible Bojangles will decide against selling after all, they said.
Private-equity firms Durational Capital Management and TJC took Bojangles private in an all-cash deal that valued the restaurant operator at more than $590 million in 2019.
The context
Bojangles, based in Charlotte, N.C., is known for its Cajun-seasoned chicken, buttermilk biscuits and sweet tea.
The company has historically operated mainly across the Southeast but has started to expand to the Northeast, eyeing more locations in New Jersey and New York.
Bojangles is also looking to cash in on the fact that no food is hotter right now than chicken. Last year, total sales at U.S. chain restaurants grew 3%, according to Technomic. Burgers were up 1%, while chicken was up 9%.
At fast-casual chicken chains, such as Raising Cane’s and Wingstop, sales increased by 24% year over year, Technomic found.
There has been a wave of restaurant mergers and acquisitions in recent months, stemming in part from a bigger appetite among private-equity buyers.
Dave’s Hot Chicken agreed to sell to private-equity firm Roark Capital in a roughly $1 billion deal; Blackstone took a majority stake in closely held Jersey Mike’s Subs that valued the company at around $8 billion, including debt; and Sycamore Partners bought Playa Bowls, an açaí bowl chain.