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Crazy Franchisor Pays An Extra $17M

Earlier this year I had concluded that the management at RFG were smarter than most after announcing it would move away from ever increasing abusive rents in shopping malls. Now I have 41 million reasons to conclude otherwise.

News from Wall Street: CKE Restaurants IPO Pulled at Last Minute

Late Thursday, CKE Restaurants announced that their planned initial public offering (IPO), to return to the New York Stock Exchange, had been cancelled due to “market conditions.”

Why Burger King Went Public Again

3G Capital and friends taking Burger King public at the New York Stock Exchange yesterday, June 20

3G Capital and friends taking Burger King public on the NYSE; photo/nyse

Burger King (NYSE:BKW) continued its organizational odyssey Wednesday by going public once again on the New York Stock Exchange.

Private Equity Firms Are Major Franchisor Owners

Many franchise chains, such as Dunkin' Brands, Domino's Pizza and Friendly's, have been taken over by private equity firms. Franchisors are considered "highly desirable targets for private equity investors." 

Burger King Returns $394M to PE Owners

Last week, I published the Restaurants and Private Equity 2011 Update paper. It is available here. At the time, Burger King's 2010 $4B acquisition by 3G Capital was noted to be in the still-to-be-determined status; that is to say to answer whether the buy would work for investors, franchisees, and the brand itself.

2011 Restaurants, Private Equity and Franchising Overview

Pacific Management Consulting has updated its 2010 private equity and restaurants report to identify what is going on in the U.S. restaurant space by private equity (PE) firm. The result? A lot of activity, investments, and some high profile failures. There have just been a modest number of apparent successes to date.

Arby's Sold to Private Equity Firm

Wendy's/Arby's Group Inc. announced that it is selling a majority stake of Arby's Restaurant Group Inc. to private equity firm Roark Capital Group for a transaction value of $430 million. 

Red Rooster And A New Privet Equity Franchisor

Red RoosterAustralian franchise chain Red Rooster along with a number of other franchise acquisitions has seen Archer Capital investment in franchising climb dramatically in readiness for its stated and speedy exit. Franchisees will already be thrilled.

Private Equity and Dunkin' Donuts Pending IPO

Wall Street equity strategist, Chuck Neul, recently blogged his opinion on the pending IPO of Dunkin' Donuts [DNKN] and the involvement of private equity firms taking Dunkin' Donuts public. In Mr. Neul’s opinion, private equity firms, such as, Bain Capital Partners, destroy the long term viability of their acquisitions by siphoning cash prior to taking their portfolio companies public.

Private Equity and Restaurants: In Search of Organic Growth

Attached is a well-written thought paper from Booz and Company, the global strategy consulting firm, on the state of and changes needed in the private equity (PE) space. Understanding private equity is so important now to the restaurant universe as so many large restaurant chains are owned by private equity firms.