
BJ’s Restaurants is getting a hand from Ron Shaich.
The casual-dining chain and the former Panera Bread CEO’s Act III Holdings on Thursday announced a cooperation agreement that will give Act III a supporting role in the strategic direction of the chain.
Act III owns 375,000 BJ’s shares, the result of a $70 million investment in May 2020. Under the new agreement, Act III has the option to buy up to 876,949 shares for $26.94 per share.
The agreement also states that Act III won’t acquire shares beyond the agreed-upon amount and will vote in accordance with BJ’s board on most matters. It lasts until May 4, 2027.
Huntington Beach, California-based BJ’s is in the midst of a transformation. In the fall, it ousted CEO Greg Levin and named former longtime Darden executive Brad Richmond as interim CEO. A week later, it hired Lyle Tick, CEO of On the Border, as president and chief concept officer.
The 216-unit casual-dining chain had been struggling with sluggish sales and traffic and was facing pressure from a pair of activist investors to make changes.
The agreement with Shaich doubled as an endorsement of BJ’s new direction.
“After engaging with BJ’s Board and management, we are confident in the discipline and financial expertise that Mr. Richmond is bringing to the Company and impressed by Mr. Tick’s vision and strategy for unlocking the full potential of the BJ’s brand,” Shaich said in a statement. “We fully support their focus and ambition and are excited to reaffirm our commitment to the Company. We look forward to collaborating with BJ’s to help them exceed their goals.”
BJ’s Board Chair Lea Anne Ottinger added that the board is confident that Act III can support the company “as we develop and execute against BJ’s vision and strategic plan.”
Shaich created Act III to invest in emerging restaurant brands that it believes could become the leading players in their category. Its portfolio includes Cava, where Shaich is chairman of the board; Tatte Bakery & Cafe; and Life Alive.
BJ’s is known for its varied menu, housemade craft beers and its giant cookie dessert, the Pizookie. During an earnings call in October, Richmond and Tick said they were assessing how to improve the brand, including simplifying operations, trimming the menu and strengthening BJ’s image.
“We are uniquely the only national brewhouse and have an opportunity to reinforce our uniqueness and what truly makes us special and not allow ourselves to be de-positioned as a generalist, casual-dining brand,” Tick told analysts at the time.
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