Restaurant Finance Across America
Alizadeh's 66 Jack-in-the Box restaurants auctioned for $39 million
Abe Alizadeh's 66 Jack-in-the Box Restaurants were sold at auction on February 24th in Sacramento for approximately $39 million, an average of $591,000 per location. There was no real estate involved. The restaurants were located in Sacramento, Fresno, Chico and Eureka California. Alizadeh's companies-Kobra Associates, Sierra Valley Restaurants and Foodservice Management-filed for bankruptcy on September 18, 2009. The restaurants are now operated by a U.S. Trustee, Beverly N. McFarland. Alizadeh had been a franchisee in the Jack-in-the-Box system for over thirty years. National Franchise Sales of Irvine, California conducted the auction.
Staff February 26, 2010 
Thomas H. Lee Partners to acquire CKE
Thomas H. Lee Partners has entered into a merger agreement to acquire CKE for approximately $928 million, including the assumption of approximately $309 million of net debt.
CKE News Release 2-26-10
Uno Files Bankruptcy
Uno Restaurants, struggling under a huge debt load, has filed a pre-arranged bankruptcy, whereby $142 million of debt will be converted to equity.
PR Newswire January 21, 2010
Are bankers being stingy?
President Obama is telling banks to lend. Economist Edward Lotterman talks about why they are not lending.
Edward Lotterman, St. Paul Pioneer Press December 17, 2009
Deal Flow Picks Up: Brinker Sells 21 Company Chilli's Stores to New Franchisee
Brinker international announced the completion of a refranchising transaction. The company said it sold 21 franchised Chili's restaurants for proceeds of $19 million to Muy Mucho Group, L.P., a new franchisee. The stores are located in Nebraska, Kansas and Missouri.
Brinker International Press Release 12/14/2009
Papa Johns Pizza announces franchise fees waived for new stores
Papa Johns has announced a program where franchisees who open a new store by November, 2010 pay no franchise fees. Also included are big discounts on ovens and a zero percent royalty rate for 12 months if the store is opened by June 30th.
Papa Johns Web Site December 3, 2009
McDonald's Reports Flat US Sales; Europe up 6.4%
Sales at US restaurants fell a slight .01% in October compared to a 5.3% gain a year ago. The company reported strong sales in the U.K., France and Germany, however.
McDonald's Corporation Press Release November 9, 2009
President Obama to Banks: Lend or Else!
Bank credit is tight in the restaurant business and throughout much of small business. There are two reasons: Many restaurant companies and small businesses are showing declining sales and some are now showing losses due to the recession. And, banks are being hammered right now by the FDIC over their previous lending policies. The harder the FDIC comes down on the banks, the more banks contract their lending to small business. President Obama demands that banks start lending again to small business. Don't look for banks to respond positively to his remarks.
White House Transcript October 24, 2009
Casual Dining Slump Continues Unabated
Brinker reports a six percent decrease in comparable restaurant sales for the quarter ended September 30, 2009.
Brinker International Press Release October 20, 2009
Jack in the Box's Second Largest Franchisee Files Chapter 11
Food Service Management Company, also known as Kobra Associates, filed for Chapter 11 bankruptcy in California on September 19th. The company was Jack in the Box's second largest franchisee and was ranked by the Monitor as the 43rd largest restaurant franchisee in the United States with 2008 revenues of approximately $135 million.
Sacramento Bee September 19, 2009
First Financial Bank Takes Over Irwin
First Financial Bancorp announced that its wholly owned subsidiary, First Financial Bank, N.A., has purchased the banking operations of Irwin Union Bank and Trust Company and Irwin Union Bank, F.S.B., and subsidiaries of Irwin Financial Corporation through agreements with the Federal Deposit Insurance Corporation.The acquisition includes the franchise loan business and franchise loan portfolio which had assets of $587 million at June 30, 2009.
PR Newswire September 18, 2009
Casual dining operators might not see a turnaround in sales if credit card delinquencies continue
Credit card delinquencies showed little sign of easing in August and charge-offs continue at a high level. Bank of America and Citigroup had the highest charge-off rate at 14.54% and 12.14%, respectively.
CNN Money September 15, 2009
Applebee's Sales Still Soft
Not exactly solid. Applebee's same-store sales decreased 4.3% for the second quarter 2009 compared to the same quarter last year. The company also announced that it is unlikely that a refranchising transaction will close before year-end.
Yahoo Finance July 28, 2009
Counter-Argument: A CIT Bankruptcy Would Have Little Effect on the Restaurant Business
A recent Reuter's headline blares "CIT failure would chill US restaurant operators." The headline is inaccurate. CIT has been out of franchise SBA lending since late last year. Large national SBA lenders including CIT exited the market last year when they could no longer sell their loans in the secondary market. CIT's corporate finance group has specialized in a few asset-based transactions in the restaurant business after having just formed the unit in 2008. They focus on franchisors, franchisees and independent chains with EBITDA greater than $7 million, as well as private equity firms involved in leverage buyouts. The attached New York Times article provides an accurate summary of the impact of CIT's troubles on various industries.
New York Times July 18, 2009
How will the restaurant business fare as Obama reshapes the US economy?
Lawrence Summers, head of the National Economic Council sees the future of the American economy as more export oriented and less consumption oriented, more environmentally oriented and less energy production oriented, more bio and software and civil engineering oriented and less financial engineering oriented, and finally more middle-class oriented and less oriented to income growth that is disproportionate towards a very small share of the population. Sounds like Western Europe.
Financial Times July 10, 2009
Whither Independents
Restaurant analysts and pundits have been predicting the demise of the independent restaurant operator for many years. In the current recession, you would think that more independent owners would be closing their doors. But no, independent owners are showing their resilience by opening restaurants in space formerly occupied by chain operators. ...more
Shareholders 1 Marcus Jundt 0
Embattled CEO Marcus Jundt resigned on Friday, May 15th as Chairman and CEO of the money-losing Kona Grill. Nothing in the company announcement addressed his employment contract which was signed only four days prior to his resignation and provides Jundt with a salary of $329,000 per year.
Kona Grill Web Site May 15, 2009
The Slapdown of Marcus Jundt
The shareholders of Kona Grill voted Marcus Jundt out as Chairman of the company and overturned the Company's recently enacted poison pill.
Yahoo Finance May 5, 2009
TGI Friday's fires the first shot in the casual dining price war!
TGI Friday's has decided to start the summer casual dining season with a $5.00 sandwich and salad offer. Watch out Applebee's and Chili's and all of you public restaurant companies. The price war is on.
USA Today April 30, 2009
Marcus Jundt, Kona CEO, loses cool on quarterly conference call
Marcus Jundt lost his cool in a quarterly conference call discussing Kona's recent quarterly results. In a most bizarre call, Jundt was pressed (and baited) by Mill Road Capital's, Thomas Lynch. Read it here on Seeking Alpha or listen to it on the company's web site at http://phx.corporate-ir.net/phoenix.zhtml?c=191864&p=irol-irhome
Seeking Alpha April 29, 2009
