NASHVILLE Tenn. O’Charley’s Inc., parent to the troubled O’Charley’s, Ninety Nine Restaurants and Stoney River Legendary Steaks casual-dining chains, said Tuesday it has named industry veteran Philip J. Hickey Jr. to its board of directors.
Hickey is the former chairman and chief executive of Rare Hospitality International Inc., parent of the LongHorn Steakhouse and The Capital Grille chains, which was acquired in October 2007 by Orlando, Fla.-based Darden Restaurants Inc. for $1.2 billion. Under his leadership at Rare, the company grew from 108 restaurants to 319 and reported more than $1 billion in annual revenues.
On news of the appointment, O’Charley’s stock price surged 39.9 percent to close Tuesday at $2.84 per share. During 2008, the company’s stock price fell 86 percent; its 52-week range is between $14.31 and $1.19.
Hickey’s selection to the board was part of an agreement between O’Charley’s and activist investor Crescendo Partners, which calls for two current directors to retire and Crescendo to nominate an industry veteran. Hickey’s appointment brings the board to 12 members, and O’Charley’s said last month that Gregory Burns, its current chairman and chief executive, would retire effective Feb. 12. Another board member is expected to also retire at the company’s shareholder meeting.
The moves will bring Crescendo, which holds a 12.5-percent stake in the company, more control over the board. It currently holds three director spots and will have four positions on a 10-person board after O’Charley’s shareholder meeting.
Lawrence Hyatt, O’Charley’s chief financial officer, was named interim chief executive while a search for Burns’ replacement is undertaken.
O’Charley’s operates or franchises 371 restaurants under the O’Charley’s, Ninety Nine Restaurants and Stoney River Legendary Steaks brands.