Blackstone's Bojangles Considers Sale Amid Fried Chicken Market Surge
- Bojangles is considering a sale, potentially valued over $1.5 billion, reflecting its growth in the chicken dining market.
- The company, bought for $590 million in 2019, has expanded its presence with new locations in the Northeast.
- Interest from restaurant operators and private-equity investors is expected to rise if Bojangles moves forward with the sale.
Bojangles Explores Sale Amid Fried Chicken Surge
Bojangles, the iconic Southern fast-food chain known for its fried chicken and biscuits, is reportedly contemplating the sale of its business, reflecting a strategic response to the increasing demand for chicken-focused dining options. A recent report from the Wall Street Journal highlights that the company could be valued at over $1.5 billion, significantly higher than its sale price of approximately $590 million during its buyout in 2019 by private-equity firms Durational Capital Management and TJC. This potential valuation underscores the brand’s growth and popularity in a market where fried chicken establishments are thriving.
The fast-food landscape is currently witnessing a robust expansion of chicken-centric restaurants, with Bojangles poised to capitalize on this trend. Operating nearly 800 locations, primarily in the Southern United States, the chain is already on a path of significant growth, venturing into new markets with expansion efforts in the Northeast. The opening of its first location in New Jersey and a second restaurant in Pennsylvania in 2022 reflects Bojangles’ strategic initiative to broaden its footprint. Industry statistics reveal that while total sales at U.S. chain restaurants increased by 3% last year, chicken-focused establishments experienced an outstanding 9% growth, further validating the chain's decision to explore a sale amidst favorable market conditions.
The versatility of chicken dishes is a key driver of this growth, appealing to a diverse customer base with customizable options for spice levels, sauces, and sides. Competitors in the fast-casual chicken segment, such as Raising Cane’s and Wingstop, have reported remarkable sales increases of 24% compared to the previous year. As Bojangles considers its options, interest from restaurant operators and private-equity investors is expected to surge if the company moves forward with the sale, reflecting the lucrative opportunity within the fast-food chicken market.
While discussions regarding the sale have not been officially confirmed by Bojangles, the potential for a transaction raises exciting possibilities for the brand’s future. As the fast-food industry continues to evolve in response to consumer preferences, the focus on chicken as a staple menu item positions Bojangles favorably within a competitive landscape.
In summary, Bojangles stands at a pivotal juncture, leveraging market trends that favor chicken dining. The company’s growth trajectory, alongside increased interest from potential buyers, highlights the strategic importance of its brand in a thriving segment of the fast-food industry.