Mergers & Acquisitions

News about company buy outs and mergers

Short-Term Focus of Activist Investors Hurting Companies

Ron Schaich, founder and chairman of Panera Bread, is a frequent speaker on the dangers of today’s rampant investor activism with its short-term outlook and the quarter-to-quarter thinking it has inspired. In 2017 about one in five publicly traded restaurant companies were set upon by activist investors, he adds.

Flynn Restaurant Group Acquires 368 Arby's Locations

U.S. Beef announced on Wednesday the sale of all its restaurants, passing the mantle of largest Arby's restaurant franchisee to RB American Group, a wholly owned subsidiary of the Flynn Restaurant Group. Flynn is also a franchise operator of Applebee's, Panera Bread and Taco Bell. The Arby's acquisition brings the Flynn Restaurant Group's portfolio to a total 1,245 quick-service, fast casual and casual dining restaurants. Together they account for $2.3 billion in sales, the most of any franchisee ever.

Jack in the Box Considering Selling Company

Jack in the Box is considering selling the company, according to news leaked yesterday. The company has been suffering from soft sales. The National Jack in the Box Franchisee Association rendered a vote of "no confidence" in July and followed it up last month by asking that CEO Lenny Comma be replaced and a CMO be hired.

News of the possible sale caused the company's stock price to pick up substantially. The increased share price doesn't help franchisees. 

Taco Bueno Files Chapter 11 Bankruptcy

Last Tuesday Dallas-based Taco Bueno Restaurants LP announced that it filed a voluntary petition for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Northern District of Texas. The franchising firm plans to reorganize and emerge from insolvency under a prepackaged plan where multi-concept franchisee Sun Holdings will take over.

ARC to Buy Tilted Kilt Brand for Ten Dollars

ARC Group, Inc. (OTC:ARCK) announced on Tuesday that it will acquire the troubled Tilted Kilt Pub and Eatery from SDA Holdings, LLC for $10. However, ARC will assume Tilted Kilt’s debt of $1.8 million and future liabilities of $1.5 million. It will also issue 1.4 million in stock. For its obligations, ARC acquires a brand of 42 restaurants from California to New York that last year generated revenues of almost $14 million.

Buyout Firms Eye Papa John’s

Four private equity firms and a hedge fund have been named as strong buyout contenders for Papa John’s. Its stock price has ranged from $69.45 to $38.05 over the last 12 months, and its recent low prices on the bottom end of that range are said to have piqued the interest of investors.

Founder John Schnatter, who regrets resigning as the company’s chairman in July and has been publicly battling the company since then, still owns 30 percent of the company.

Activist Hedge Fund Takes Stake in Papa John's

John Schnatter, founder and former CEO at Papa John's is barely gone, although he wants to come back, and now an activist hedge fund has its sights firmly set on the pizza chain. Befitting its self-title of "activist," Legion Partners Asset Management LLC plans to make big changes at the pizzeria.