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Eegee’s restaurant closes Arizona locations as it becomes the latest 2024 fast food bankruptcy
The popular Arizona sub sandwich chain Eegee’s has announced it is filing for Chapter 11 bankruptcy protection and will close several stores. Its bankruptcy filing in the final weeks of 2024 is just the latest in a string of bankruptcies that have afflicted chain restaurants this year.
Here’s what you need to know about Eegee’s bankruptcy and what it means for the beloved Arizona sub staple.
What is Eegee’s?
Eegee’s is a chain of sub sandwich shops that operate in Arizona. The company is known for its “grinder” sandwiches and also serves traditional subs as well as chicken, fries, and pretzels.
Eegee’s was founded in Tucsan, Arizona, in 1971. In 2018, the chain was sold to the private equity firm 39 North Capital.
At the time of the sale, Eegee’s CEO C. Ron Petty, said, “ “39 North’s investment will enable us to supercharge our growth, expand our footprint, remodel the restaurant exteriors and invest in new technology. Just as important, 39 North will continue the family-owned-and-operated tradition on which eegee’s was founded.”
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Cherry Bounce Hospitality Finalizes Acquisition of Party Fowl as the Brand Completes Strategic Restructuring Phase
Renowned Nashville hot chicken brand poised for future growth alongside new partners as it celebrates 10-year anniversary
Nashville, TN (RestaurantNews.com) As Party Fowl emerges from a period of restructuring, the brand will look to its next chapter of growth in a new partnership with Cherry Bounce Hospitality, a Raleigh-based restaurant group that owns a portfolio of restaurant concepts that include Cajun Steamer Bar & Grill, Trudy’s Tex Mex, Tower 7 and K-38 Baja Grill. In the coming years, Party Fowl will share its signature Nashville hot chicken and Boozy Slushies in expansion across the southeastern United States.
Party Fowl originally opened its doors in The Gulch area of Nashville, TN in 2014, bringing a unique take on hot chicken to the city’s vibrant dining scene. Over the past decade, it has expanded to three locations in Nashville, Donelson and a licensed location at Nashville International Airport, becoming a popular destination for locals and tourists alike.
“We love the culture, resilience, drive and passion behind the Party Fowl brand — it’s inspiring,” said Cherry Bounce Hospitality CEO Scott Taylor. “Our team looks forward to welcoming Party Fowl into our family of brands, supporting its continuing growth and helping up-level operations in this new partnership.”
In its 10-year history, Party Fowl has garnered numerous awards while establishing itself as a hospitality pioneer combining Nashville’s iconic hot chicken with a laid-back, fun atmosphere that appeals to a broad audience. As part of the new partnership, Cherry Bounce Hospitality plans to enhance the Party Fowl’s offerings with menu innovations that will include a revamped lunch and fresh takes on its popular slushies. Plans are also in place to open at least two new locations in 2025.
With existing operations in the Nashville area, Cherry Bounce Hospitality — a wholly owned subsidiary of Hargett Hunter — recognizes Party Fowl as a natural fit within its portfolio. “We are thrilled to welcome Party Fowl into the Hargett Hunter family. Their innovative approach to Southern cuisine and hospitality aligns perfectly with our vision for growth,” said Jeff Brock, Hargett Hunter’s Founder and Managing Partner. Brock added, “We have been tracking Party Fowl for almost a decade; so, we knew that we had to get involved when the opportunity to support the company in its restructuring emerged earlier this year.”
For more details and information, visit PartyFowl.com. To learn more about Cherry Bounce Hospitality and Hargett Hunter’s brands and leadership, visit CherryBounceHospitality.com and HargettHunter.com.
About Party Fowl
Specializing in Nashville hot chicken, local brews, Boozy Slushies and brunch, Party Fowl offers diners a one-of-a-kind experience in its three Nashville Tennessee locations. The restaurants feature a wide variety of Nashville hot chicken dishes with heat levels ranging from Southern Fried to “Poultrygeist,” as well as creative spins on the classics. For additional information, please visit PartyFowl.com.
About Hargett Hunter
Hargett Hunter invests exclusively in emerging restaurant concepts where $10 million to $50 million of capital can be deployed into companies generating a minimum of $10 million of annual revenue. The firm provides the requisite capital and operational capability to support growth, acquisitions and recapitalizations of emerging restaurant concepts with less than one hundred units. Having invested over $250 million in more than a dozen emerging concepts across the United States, Hargett Hunter has been purposefully built to address the needs met by emerging restaurant chains as they attempt to scale. Hargett Hunter’s dynamic team of highly respected industry leaders, service providers and platform partners is dedicated to driving value and mitigating common risks for the country’s premier emerging concepts. With resources across the United States, Hargett Hunter is headquartered in Raleigh, NC and has offices in Dallas, TX.
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CRACKER BARREL REPORTS FIRST QUARTER FISCAL 2025 RESULTS AND REAFFIRMS FISCAL 2025 OUTLOOK
LEBANON, Tenn., Dec. 4, 2024 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the first quarter of fiscal 2025 ended November 1, 2024.
First Quarter Fiscal 2025 Highlights
First quarter total revenue was $845.1 million. Compared to the prior year first quarter, total revenue increased 2.6%.
Comparable store restaurant sales increased 2.9%, outperforming the Black Box Intelligence Casual Dining Index by approximately 290 basis points.
Comparable store retail sales decreased 1.6%.
GAAP earnings per diluted share were $0.22, and adjusted1 earnings per diluted share were $0.45.
GAAP net income for the first quarter was $4.8 million. Adjusted EBITDA1 was $45.8 million, a 4.3% increase compared to the prior year quarter adjusted EBITDA1 of $43.9 million.
Commenting on the first quarter results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "We delivered first quarter results that were in line with our expectations. We are pleased that our comparable store sales and traffic results outperformed the Casual Dining industry, and we saw continued improvement in the dinner daypart. Our fiscal year is off to a strong start, and we are focused on sustaining this momentum and continuing to execute against our five strategic pillars. We remain confident in our plans, and this is reflected in our reaffirmed outlook."
First Quarter Fiscal 2025 Results RevenueThe Company reported total revenue of $845.1 million for the first quarter of fiscal 2025, representing an increase of 2.6% compared to the first quarter of fiscal 2024.
Cracker Barrel comparable store restaurant sales increased 2.9%, including total menu pricing increases of 4.7%. Comparable store retail sales decreased 1.6% from the prior year quarter.
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Jack in the Box Inc. Reports Fourth Quarter and Full-Year 2024 Earnings
Jack in the Box same-store sales of (2.1%) in Q4 2024, (1.3%) for FY 2024
Del Taco same-store sales of (3.9%) in Q4 2024, (1.5%) for FY 2024
Jack in the Box and Del Taco opened 44 restaurants in FY 2024, including net positive unit growth and a growing development pipeline for both brands
Jack in the Box opened 30 restaurant openings in FY 2024, the highest openings since 2012, and completed 60 restaurant site approvals in FY 2024, the highest since 2010
Del Taco refranchised 47 restaurants in FY 2024, including development commitments for 42 new restaurants, and is now nearly 80% franchised
Jack in the Box expecting to have 8 restaurants open in Chicago in calendar 2025, and will enter Florida late in the year
Jack in the Box signed franchise development agreement during Q1 to enter Detroit with 5 new restaurants; now has 10 total restaurant commitments in Michigan
November 20, 2024 04:01 PM Eastern Standard Time
SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the fourth quarter, ended September 29, 2024.
“I am very pleased we achieved our gross opening targets for both Jack in the Box and Del Taco in fiscal 2024, reflecting a level of growth not seen in over a decade, and also with the significant progress on our digital initiatives and POS rollout,” said Darin Harris, Jack in the Box Chief Executive Officer. “We managed well through a difficult top-line macro environment in 2024, and will continue to aggressively pursue initiatives to help energize sales and traffic in 2025.”
Jack in the Box Performance
Same-store sales decreased 2.1% in the fourth quarter of 2024, comprised of a decrease in company-operated same-store sales of 2.2% and a decrease in franchise same-store sales of 2.0%. Sales performance was driven by a decrease in transactions and unfavorable menu mix, which was partially offset by price. Systemwide sales(1) for the fourth quarter decreased 1.7%.
Jack in the Box had 16 new restaurant openings and 20 restaurant closures during the fourth quarter. For fiscal year 2024, Jack in the Box opened 30 new restaurants, and was net positive 5 restaurants. As of the end of the fourth quarter, and since the launch of the development program in mid-2021, the company has signed 101 agreements for a total of 464 restaurants, with 51 already opened to date. During the fourth quarter, Jack in the Box announced an agreement with a new franchisee for 12 restaurants in the Chicago market, adding to the 8 company-owned openings planned for calendar year 2025.
Restaurant-Level Margin(3), was 18.5% for the fourth quarter, a decrease from 20.7% in the prior year period. The decrease was driven by transaction declines, as well as inflationary increases in wages, commodities and utilities, slightly offset by menu price increases.
Franchise-Level Margin(3), was 40.4% for the fourth quarter, an increase from 39.9% a year ago. The increase was driven by lower information technology support costs and the benefit of franchise lease termination income in the current year, partially offset by lower franchise same-store sales, and lower early termination fees compared to the prior year.
View source version at Jack in the Box
FAT Brands Announces Refinancing of Twin Peaks Credit Facility
Major Milestone Before Planned Public Listing of Twin Hospitality Group
LOS ANGELES, Nov. 18, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., (NASDAQ: FAT), a leading global franchising company and parent company of 18 iconic brands, is pleased to announce that Twin Hospitality Group Inc., the operating unit for its Twin Peaks and Smokey Bones restaurant brands, has priced the issuance of new notes to refinance its whole business securitization credit facility originated in October 2021. The aggregate principal balance of the new Series 2024-1 fixed rate notes (the “Notes”) is $416,711,000 across four tranches, with a weighted average interest rate of 9.5% per annum. The issuer of the Notes will be Twin Hospitality I, LLC, a wholly-owned subsidiary of Twin Hospitality Group Inc.
Closing Date | Class | Seniority | Principal Balance | Coupon | Anticipated Repayment Date | Final Legal Maturity Date | ||
11/21/2024 | A-2-I | Super Senior | $ | 12,124,000 | 9.00 | % | 10/25/2027 | 10/26/2054 |
11/21/2024 | A-2-II | Senior | $ | 269,257,000 | 9.00 | % | 10/25/2027 | 10/26/2054 |
11/21/2024 | B-2 | Senior Subordinated | $ | 57,619,000 | 10.00 | % | 10/25/2027 | 10/26/2054 |
11/21/2024 | M-2 | Subordinated | $ | 77,711,000 | 11.00 | % | 10/25/2027 | 10/26/2054 |
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The Notes may be exchanged for a proportionate interest in Exchangeable Notes in two tranches, referred to as Class A2IIB2 (up to $326,876,000) and Class A2IIB2M2 (up to $404,587,000), which reflect in the aggregate the characteristics of the corresponding exchanged Notes.
Ken Kuick, Co-CEO of FAT Brands, said, “We are pleased to announce the successful pricing of the TWNP Series 2024-1 whole business securitization notes. This financing stabilizes Twin Peaks’ financial structure and represents a key milestone as we work toward the goal of creating a standalone public company.”
Kuick continued, “Additionally, the refinancing allows us to further drive the growth of Twin Peaks, our fastest-growing concept. Twin Peaks’ compelling unit economics continue to fuel strong demand from both existing and potential franchisees seeking new locations. Year to date, we have opened nine new lodges bringing our total to 115 Twin Peaks locations.”
Jefferies LLC acted as sole structuring agent and sole bookrunner for this transaction. Legal advisors were Katten Muchin Rosenman LLP for FAT Brands Inc., and King & Spalding LLP for Jefferies LLC.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security. The Notes have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
About Twin Peaks
Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks franchises and owns 115 restaurants in the United States and Mexico. Twin Peaks is the ultimate sports lodge featuring made-from-scratch food and the coldest beer in the business, surrounded by scenic views and wall-to-wall TVs. For more information, visit twinpeaksrestaurant.com.
View source version at FAT Brands
Kura Sushi USA Announces Closing of $68.0 Million Public Offering of Common Stock
IRVINE, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced the closing of its underwritten public offering of 800,328 shares of its Class A common stock at a public offering price of $85.00 per share, including the exercise in full by the underwriters of their option to purchase an additional 104,390 shares of Class A common stock. The Company received proceeds from the offering, net of the underwriters’ discount, of approximately $64.6 million.
Kura Sushi intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures, working capital, and other business purposes.
William Blair & Company, L.L.C., Barclays Capital Inc. and TD Securities (USA) LLC are acting as joint book-running managers for the offering. Craig-Hallum Capital Group LLC, Roth Capital Partners and The Benchmark Company, LLC are acting as co-managers for the offering.
The offering was made pursuant to an effective shelf registration statement including a base prospectus that has been filed with the Securities and Exchange Commission (the “SEC”) and declared effective and is available on the SEC website. A prospectus supplement and the accompanying base prospectus related to the offering have been filed with the SEC and are available on the SEC website. Copies of these documents may be obtained from William Blair & Company, L.L.C., Attn: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by telephone at 1-800-621-0687 or by email at: prospectus@williamblair.com; Barclays Capital Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at 1-888-603-5847 or by email at: barclaysprospectus@broadridge.com; or TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at 1-855-495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Kura Sushi USA, Inc.
Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept with 70 locations across 20 states and Washington DC. The Company offers guests a distinctive dining experience built on authentic Japanese cuisine and an engaging revolving sushi service model. Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with over 550 restaurants and 40 years of brand history.
View source version at Kura Sushi
Jersey Mike's is being sold to Blackstone
The sandwich chain agreed to sell a majority stake to the private-equity firm, which owns Tropical Smoothie Café. The deal is for a reported $8 billion.
Jersey Mike's is being sold to Blackstone, the private-equity firm said on Tuesday.
Blackstone is set to acquire a majority stake in the fast-casual sandwich chain. The deal, for a reported valuation of $8 billion, came the morning after media reports said a deal was set to be announced this week.
“We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” Peter Cancro, CEO and owner of the chain, said in a statement. Cancro will maintain a “significant equity stake” in the company and will continue to lead the business, according to Blackstone.
The deal is the latest sale involving a franchise restaurant brand, which have been fetching large sums in acquisitions despite concerns about financing and weak industry sales. And Blackstone is a major buyer. The firm previously acquired Tropical Smoothie Café for $2 billion. It is also a major investor in the drive-thru coffee chain 7 Brew.
Like Tropical Smoothie, Jersey Mike’s has thrived in recent years with a combination of unit growth and strong per-unit sales. The country’s second-largest sandwich chain, Jersey Mike’s system sales have grown an average of 24% the past five years, according to data from Restaurant Business sister company Technomic.
By comparison, the average sales growth over that period for fast-casual sandwich chains like Portillo’s, Jimmy John’s and Firehouse Subs is 5.2%.
Unit volumes over the past five years have increased 62%. A typical Jersey Mike’s location generates $1.3 million in annual sales, well over twice the volumes of a Subway—which was sold for $9.6 billion to Roark Capital last year.
The results earned owner Peter Cancro the Restaurant Business Restaurant Leader of the Year award earlier this year.
“Jersey Mike’s has grown for more than a half century by maintaining an unrelenting focus on quality,” Peter Wallace, senior managing director with Blackstone, said in a statement. “Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees.”
Cancro founded the chain nearly 50 years ago, after buying the sub shop he worked at as a 17-year-old. But he’s been pondering the future of the company he founded. Last year, Restaurant Business first reported that he was assessing his options, including possibly buying another concept or selling the company.
And at the Restaurant Leadership Conference in April, Cancro noted that the chain was “always for sale.” That followed a question on reports that the company had been in talks with Blackstone over an $8 billion deal.
View source version at Jersey Mike's
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