Operations

Bojangles’ closes units amid poor same-store sales

The biscuit chain, which is under a purchase agreement, reported comps growth of just 0.1% for company-owned stores.
Photograph: Shutterstock

Bojangles’ Famous Chicken ‘n Biscuits, which announced a pending sale earlier this week, closed 12 underperforming stores this quarter and plans to refranchise more than two dozen others in 2019.

The quick-service biscuit chain reported a 1.4% increase in revenue Thursday for the quarter ended Sept. 30. Bojangles’ also saw same-store sales increases of just 0.1% for company-owned stores and 0.7% for franchised units for the quarter.

Assuming the sale goes through, new owners Durational Capital Management and The Jordan Company will have some challenges in boosting sales at Bojangles’.

The company announced its plans to close and refranchise units in August amid poor sales. Bojangles’ also pared down its menu to speed throughput and increase operational efficiency.

Bojangles’ new owners will also be tasked with finding the chain a leader. CEO Clifton Rutledge resigned abruptly in March. Randy Kibler, a previous president and CEO of the chain, has been serving as interim president and CEO since then.

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