Rumors about Bojangles' fate began swirling in early February when Falfurrias, which owns a controlling stake in the restaurant chain, retained Harris Williams & Co., a financial advising company, to explore options about its investment.
The Bojangles’ situation, however, is unlike others undergoing transformations in the quick-service segment. As ownership has recently changed hands with Burger King and, soon, Arby’s, A&W and Long John Silver’s, Falfurrias’ move was not incited by struggling sales. Rather, the company believes now is the time to get the biggest ROI from its Bojangles’ shares.
“We have been extremely pleased with our investment in Bojangles’ and its growth as a premier quick-service restaurant group in the southeastern U.S.,” said Marc D. Oken, co-founder and managing partner of Falfurrias Capital Partners. “We feel now is the right time to review our position for our shareholders because of Bojangles’ profitability, growth and future expansion opportunities in the Southeast.”
Falfurrias purchased Charlotte, N.C.-based Bojangles in September 2007. Since then, the restaurant chain’s unit count has grown by nearly 30 percent and now includes 488 company-owned and franchised restaurants in 10 states, primarily throughout the Southeast.
The private equity firm typically holds onto its investments for a 4-to-7-year time frame.
A Bojangles’ Restaurants’ Inc. spokesperson said the company supports Falfurrias’ choice to explore the possible sale, and plans on helping the firm maximize its ROI in the move.
“From the beginning, we have operated and modeled our business with the long term interest of the Bojangles’ brand at heart. That will not change,” said Randy Kibler, president and CEO. “We are confident that the efforts of our team members, our franchisees and the extraordinary loyalty of our customers will ensure the continued success and growth of the Bojangles’ brand and system."
