The Charlotte-based fast food chain Bojangles is contemplating a sale, with a potential price tag exceeding $1.5 billion. As reported by WBTV, in 2019, private equity acquired firms Durational Capital Management and TJC for approximately $590 million. The chain has since implemented new technologies, including an improved app experience and a virtual drive-thru assistant.
Current sales figures in the fast food industry, specifically concerning chicken-oriented restaurants, have increased by 9% from the previous year. Capitalizing on this growth, Bojangles, whose presence spans across 20 states, aims to broaden its national footprint. In the event of a solidified market presence, according to a RetailWire article, successful escalation into new territories could enhance its appeal to strategic buyers or investors.
Bojangles operates approximately 830 restaurants, each generating average unit volumes over $2 million. The chain, as mentioned in WSOC-TV, is exploring the possibility of changing hands, yet there remains the alternative scenario where Bojangles chooses not to pursue a sale at all.
The momentum in the fried chicken market segment affords Bojangles a favorable position to attract prospective acquirers. Having introduced the brand to dense, high-cost Northeastern markets, they have marked territory with their entry in New Jersey, as reported by a RetailWire article. Assuring buyers of the brand's scalability has thus become critical for finance arrangements.
Bankers hired on behalf of Bojangles by Durational Capital Management and TJC are testing the market's waters, with private equity funds sitting on substantial reserves and debt markets showing signs of stabilization, hinting at receptive conditions for a seller's market.
