Blackstone-Backed Bojangles Considers Sale Amid Rising Demand for Fried Chicken
- Bojangles is exploring a potential sale amid rising demand for fried chicken, possibly valued over $1.5 billion.
- The brand's valuation has significantly increased since its 2019 buyout by private equity firms, indicating strong market interest.
- Bojangles' growth strategy includes expanding into new markets, enhancing its appeal to potential buyers in the fried chicken sector.
Bojangles Eyes Potential Sale Amid Fried Chicken Demand Surge
Bojangles, the iconic Southern fast-food chain famed for its fried chicken, biscuits, and sweet tea, is reportedly exploring the possibility of selling its business. This comes at a time when demand for fried chicken is escalating, positioning the brand favorably within the fast-food landscape. The Wall Street Journal indicates that Bojangles could be valued at over $1.5 billion, reflecting a significant increase from its 2019 buyout price of approximately $590 million by private equity firms Durational Capital Management and TJC. As the fried chicken segment continues to thrive, Bojangles appears poised to capitalize on this momentum, making it an attractive prospect for potential buyers.
Founded in Charlotte, North Carolina, in 1977, Bojangles has expanded to roughly 800 locations, predominantly in the Southern United States. The company has been actively pursuing growth opportunities, as evidenced by its recent openings in the Northeast, including its inaugural New Jersey location and a second restaurant in Pennsylvania in 2022. This strategic expansion highlights Bojangles' intent to tap into new markets and diversify its customer base, a move that could further enhance its valuation amid ongoing discussions about a sale. The company's growth trajectory aligns with the broader trend in the U.S. restaurant industry, where chicken-focused establishments are outpacing their competitors.
The fast-food sector is witnessing a remarkable shift, with overall sales at U.S. chain restaurants growing by 3% last year. However, chicken-centric chains are experiencing an even more robust surge, with a reported 9% growth. Fast-casual brands like Raising Cane’s and Wingstop have seen sales soar by 24%, reflecting the increasing popularity of chicken dishes among consumers. This growth can be attributed to the versatility of chicken, which allows for customizable spice levels, sauces, and sides, appealing to a diverse customer demographic. Should Bojangles proceed with its sale discussions, the interest from restaurant operators and private equity investors is likely to intensify, fueled by the promising outlook for the fried chicken market.
As the landscape for fried chicken continues to flourish, Bojangles stands at a crossroads, potentially leveraging its strong brand heritage and market positioning to attract lucrative offers. While the company has yet to confirm any sale negotiations, the heightened interest in chicken restaurants bodes well for its future, making it a focal point in the fast-food industry.