In-N-Out of chicken searches for a $1.5 billion buyer as sales spike 9%

A popular fried chicken chain is exploring the idea of selling its business following last year’s 9 percent spike in chicken sales across US restaurants.

Bojangles, one of the most iconic brands in the Carolinas, is working with investment bankers to potentially sell itself for over $1.5 billion, about three times what it sold for in a 2019 buyout.

Private equity firms and other restaurant operators are expected to be interested if Bojangles is up for sale, according to The Wall Street Journal.

As of now, the chicken chain has not confirmed whether it will go on the market.

The 48-year-old business has rapidly expanded since opening its first restaurant in North Carolina in 1977. 

Known for its Cajun-spiced chicken and homemade buttermilk biscuits, it now has over 800 restaurants worldwide.

Bojangles recently opened its first location in Las Vegas and is set to open several restaurants on the West Coast later this year.

These openings, along with the chicken chain sales growth, are factors in why Bojangles is one of the nation’s fastest-growing quick-service chicken chains.

Bojangles is known for serving Cajun-spiced chicken and homemade buttermilk biscuits

R.J. Hottovy, head of analytical research at Placer.ai, explained why he believes chicken chains like Bojangles have achieved such success.

‘Chicken concepts have outperformed the broader quick-service restaurant category the past several years, primarily due to the product’s versatility and how easily it adapts to different flavors and dietary needs,’ he said. 

‘This adaptability has enabled a number of brands to stand out by offering a wide range of customizable spice levels, sauces, and sides that appeal to a broader customer base.’

Retail expert Neil Saunders, of GlobalData, explained why chicken chains are standing out from the rest of the restaurant industry in the current market.

‘The restaurant sector has generally been under pressure in terms of generating growth,’ he told DailyMail.com.

‘However, chicken chains have been performing far better than average which is why investors are interested in them.

‘Bojangles has been growing, which supports a high valuation, but it also has potential for further expansion which is baked into the purchase price,’ he continued.

‘Any buyer would want to ramp up store openings and geographical expansion as part of a playbook to recoup their investment.’

Bojangles is exploring the idea of putting the chain on the market for $1.5 billion

The 48-year-old business has rapidly expanded since opening its first restaurant in North Carolina in 1977

‘Bojangles has been growing, which supports a high valuation, but it also has potential for further expansion which is baked into the purchase price,’ Neil Saunders, managing director of GlobalData, told DailyMail.com

The last time Bojangles explored a sales opportunity was in 2018, three years after it became public.

Durational Capital Management and TJC confirmed a $593.7 million acquisition deal in 2018, which was finalized in 2019.

Once the agreement became official, Bojangles became private.

‘Bojangles is an iconic brand with an authentic Southern heritage and a deeply loyal following,’ Eric Sobotka, managing partner at Durational Capital Management, said at the time.

‘We have admired the brand and its high quality and craveable food for years, and we look forward to partnering closely with the employees and franchisees to drive its future growth and continued success.’

The chain went on to initiate an expansion strategy, which featured menu additions and a new restaurant design concept.

Bojangles is not slowing down its expansion and is looking to enter markets with strong unit economics and operational support.

Some of these markets include New Jersey, New York, Colorado, and Missouri.

Bojangles plans were revealed shortly after Dave’s Hot Chicken agreed to sell to Roark Capital for about $1 billion.

The private equity firm had already made headlines in 2023 after acquiring the Subway sandwich chain for $9.6 billion.

Jersey Mike’s was acquired by Blackstone private equity firm for $8 billion last year, which was finalized last January.

DailyMail.com has reached out to Bojangles for comment about the sale exploration.