While challenging market conditions caused restaurant brands like Dave & Buster’s and CKE Restaurants to pull or postpone their planned initial public offerings, 2012 did see the completion of several IPOs from major restaurant companies.
Del Frisco’s Restaurant Group LLC, parent to the Del Frisco’s, Sullivan’s and Del Frisco’s Grille brands, kicked off the year with the industry's first filing of 2012.
In May, Ignite Restaurant Group, parent to Joe’s Crab Shack and Brick House Tavern + Tap, said it aimed to raise $75 million in its public offering. The next month, Chanticleer Holdings Inc., a minority owner of Hooters of America, began trading in an $11 million IPO.
Bloomin’ Brands Inc., the parent to Outback Steakhouse, Fleming’s Prime Steakhouse, Bonefish Grill and Carabba’s Italian Grill, began trading in early August with a disappointing performance, selling 16 million shares at $11, below the casual-dining company’s initial goal of 21 million shares selling between $13 and $15.
The restaurant industry also saw several significant mergers and acquisitions in 2012. Most recently, Caribou Coffee said it would go private in a $340 million acquisition by international holding company Joh. A. Benckiser Group and Luby’s Inc., owner of Luby’s Cafeterias and Fuddruckers, announced the $11 million acquisition of the 14-unit Cheeseburger in Paradise chain.
Other notable moves included Carrols Restaurant Group Inc.’s purchase of 278 Burger King units, making the company that brand’s largest U.S. franchisee, Darden Restaurants Inc.’s acquisition of the Yard House chain for $585 million and private equity firm Centerbridge Partners’ $1.1 billion purchase of P.F. Chang’s China Bistro.
For more information on restaurant company IPOs and other industry finance news, visit NRN.com.
Contact Charlie Duerr at [email protected].