Dow Jones columnist foresees two QSR IPOs this year

Dow Jones columnist foresees two QSR IPOs this year
Tags: Burger/Steak/BBQ, Coffee/Bakery/Donut
March 17, 2010 - Christa Hoyland

Of the major privately held quick-service brands that could initiate public offerings this year, Dow Jones Investment Banker columnists think Dunkin' Donuts or Cold Stone Creamery are good candidates. Those are just two of the 10 deals the news and information solution for investment bankers predicts for 2010.

Dow Jones Investment Banker columnist Sameer Bhatia says Cold Stone is one of the most successful ice-cream concepts launched in the United States over the last two decades. Kahala Corp. bought the concept in 2007 when it had more than $1.1 billion in sales. It now has more than 1,400 locations worldwide.

"Cold Stone Creamery owner Kahala Corp. is likely to take the company public while there's still growth left in the business," he said in a news release. "They could also possibly sell it to Canadian coffee chain Tim Hortons, which operates 65 co-branded stores with Cold Stone and has the financial capacity to easily acquire it."

As far as Dunkin' Donuts is concerned, it is the second largest coffee chain in the world by sales, with $6.9 billion annually and more than 15,000 distribution points. Dunkin' Brands, owner of Dunkin' Donuts and Baskin-Robbins, was taken private by Bain, Carlyle and Thomas H. Lee in 2006. The owners have ramped up the franchise model with the goal of adding 1,000 Dunkin Donuts outlets annually in the next few years. (THL Partners recently signed a deal to acquire CKE Restaurants Inc., parent company of Carl's Jr. and Hardee's. But that deal may fall through if reported speculation over whether billionaire investor Nelson Peltz also is interested in CKE is true, as reported by the New York Post. Peltz's firm, Trian Fund Management controls Wendy's/Arby's Group Inc.)

"Recent moves to strengthen the Dunkin Donuts executive team by adding general counsel and global customer, marketing, human resources and communications officers are indication of an upcoming IPO this year," he said.

Bhatia also speculates that fast casual fro-yo brand Pinkberry could go public in light of its global expansion efforts.

Other Dow Jones Investment Banker columnists predict deals in the areas of entertainment, telecom, media, technology, pharmaceuticals, biotechnology and automotives. Those predictions include the sale of healthcare IT company Allscripts, Bausch & Lomb, Harley-Davidson, Mead Johnson and Six Flags theme parks and pharamaceutical company Vivus. The columnists also think an IPO for social media business-networking site LinkedIn is imminent.