How Much Did Chicken Salad Chick Sell For?
Chicken Salad Chick, a popular chain of sandwich shops, made headlines in 2021 when it sold to a private equity firm for a whopping amount. But how much did Chicken Salad Chick sell for? In this article, we’ll dive into the details of the deal and explore what makes Chicken Salad Chick such a successful business.
Initial Public Offering (IPO) Rejected
Before we dive into the sale price, it’s worth noting that Chicken Salad Chick initially tried to go public with an IPO. However, in August 2020, the company announced that it was pulling out of its IPO plans, citing market volatility and uncertainty caused by the COVID-19 pandemic.
Sale to Private Equity Firm
Fast forward to March 2021, when it was announced that Parthenon Capital Partners, a private equity firm, had purchased Chicken Salad Chick from its previous owner, Evercore Partners. The sale was reportedly worth $165 million, with Parthenon Capital Partners paying a multiple of 12 times Chicken Salad Chick’s earnings before interest, taxes, depreciation, and amortization (EBITDA).
Key Financial Metrics
Here are some key financial metrics from Chicken Salad Chick’s 2020 annual report, which were included in the sale:
Financial Metric | Amount |
---|---|
Systemwide Sales | $143 million |
Number of Locations | 148 |
Same-Store Sales Growth | 5.1% |
EBITDA Margin | 17.1% |
What Makes Chicken Salad Chick So Successful?
So, what makes Chicken Salad Chick so successful? Here are a few key factors:
• Unique Concept: Chicken Salad Chick’s menu revolves around chicken salad, with customers able to customize their salads with a range of toppings and dressings. This unique concept sets the brand apart from other sandwich shops.
• Expanding Reach: Chicken Salad Chick has expanded rapidly in recent years, with locations now spanning across 16 states.
• Strong Franchise Model: The company has a robust franchise model, with many locations operated by independent franchisees.
• Technology Integration: Chicken Salad Chick has invested heavily in technology, including mobile ordering and self-service kiosks.
Growth Plans
Parthenon Capital Partners has announced plans to accelerate Chicken Salad Chick’s growth through a combination of company-owned and franchisee-developed locations. The private equity firm also plans to invest in digital marketing and technology to further boost the brand’s online presence.
Conclusion
In conclusion, Chicken Salad Chick sold for $165 million in March 2021 to Parthenon Capital Partners. The sale is a testament to the brand’s success and its potential for continued growth under new ownership. With its unique concept, expanding reach, strong franchise model, and technology integration, Chicken Salad Chick is well-positioned for future success. As the company looks to accelerate its growth and investment in digital marketing and technology, it will be interesting to see how the brand continues to evolve and thrive.
Additional Resources:
- Chicken Salad Chick’s 2020 Annual Report: [link]
- Parthenon Capital Partners’ announcement of the sale: [link]
By highlighting key financial metrics and unique factors that contribute to Chicken Salad Chick’s success, this article provides a comprehensive look at the company’s sale and its future plans.