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Junior Holding Company Makes Waves On to International Restaurant Scene
By: AllPennyStocks.com News
February 1, 2012
Plenty of brands have earned the type of reputation that makes them a household name across the globe. There are few places that a person can go where names like Nike or McDonalds aren’t recognized immediately. Hooters restaurant is among those elite with their owl logo just about as recognizable as any restaurant image out there today. The company may tout themselves as “nearly world famous,” but nothing could be further from the truth.
Charlotte, North Carolina-based Chanticleer Holdings, Inc. (OTCBB:CCLR) makes their business by seeing to it that the Hooters name continues to flourish across the globe. Formed seven years ago as a business development company, Chanticleer transitioned into an operating holding company in 2008. In 2011, the company aligned with some heavy-hitting private equity investors, including H.I.G. Capital, KarpReilly and Kelly Hall. Hall is president of Texas Wings Inc., the largest Hooters franchisee in the United States. The group then acquired Hooters of America (HOA), a restaurant franchisor and operator now controlling more than 455 Hooters restaurants spanning 44 states and 28 countries. HOA owns 160 of the restaurants. Chaticleer CEO Mike Pruitt also sits on the Board of Directors at HOA.
Despite their proclivity to operate a restaurant brand that certainly has some flash in selling American bar food with the help of the world-famous Hooters girls, Chanticleer is a relatively unflashy, low-profile company with a potentially strong upside. The company has ownership interests in three Hooters restaurants in South Africa and is acquiring or partnering in franchise territories in Brazil, Australia, Hungary, Poland, and the United Kingdom.
Operations look to be picking up some steam at Chanticleer with the latest Hooters in Australia being opened earlier this month in Campbelltown, the second Australian location for Chanticleer in six months.
Yesterday, the company disclosed that it has come to terms with international restaurant executive Alex Hemingway as director of Chanticleer Europe to explore European development of the Hooters restaurant franchise in Eastern and Western Europe. A seasoned vet with highly-relevant experience in franchised restaurants in Europe, including brands such as Pizza Hut, KFC, Dunkin Donuts, Hemingway will begin using his franchise and international business skill set to spearhead initiatives for the company hopes to be a profitable expansion into the Eurozone. Per the agreement, Chanticleer will own 80% of the business based in Budapest, Hungary, with a group led by Mr. Hemingway owning the remaining 20%.
"As we focus our growth strategy on key emerging International markets, Alex will play a major role in accelerating our plan in 2012. His standout success in positioning companies for growth and profitability will play a vital role in our expansion," commented Chanticleer chief Pruitt.
An interesting thing to note about CCLR is that there are only 2.5 million shares outstanding, which leaves the company with a market capitalization of only $7.5 million. Trailing twelve month revenues have been slight as the company has only been at the Hooters game for a limited amount of time, but looks to be hitting its stride to some degree. Seasoned management with a history of success, a tight capital structure, connections with large equity firms and an international brand that is hard to mistake positions Chanticleer as a company to keep an eye on for emerging developments. Proper due diligence is encouraged.
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