Financing

Bojangles’ is reportedly eyeing a sale

The struggling biscuit chain’s stock climbed on reports that it’s looking for a buyer.
Photograph: Shutterstock

Bojangles’ Famous Chicken ‘n Biscuits, long rumored to be eyeing a sale, saw shares of its stock soar late Friday on news that the biscuit chain is seriously considering searching for a buyer.

Bojangles’ representatives did not immediately respond to a request for comment from Restaurant Business on the exclusive report by the Reuters news service.

The company’s stock was up more than 14% Friday following the report.

Bojangles’ is working with Bank of America as it eyes its possible sale options, according to Reuters.

The Charlotte, N.C.-based quick-service chain has struggled in recent quarters, announcing last month that it would be closing 10 stores and refranchising more than two dozen others as it seeks to turn around declining same-store sales. Company CEO Clifton Rutledge abruptly left the chain in March.

If a sale comes to fruition, Bojangles’ would be the latest in a string of public restaurant chains that have been sold. On Tuesday, Arby’s parent company Inspire Brands said it planned to purchase drive-in chain Sonic Corp. Earlier this year, Inspire completed its purchase of once-public Buffalo Wild Wings. Last month, Cava Group said it intended to buy fast-casual chain Zoes Kitchen in a $300 million deal that will take the company private.

Papa John’s stock, meanwhile, jumped this week amid reports that it, or its beleaguered founder John Schnatter, was pursuing a sale.

 

 

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