The series is in the midst of a years-long comeback effort after it was sold in 2017 for $565 million.
Bob Evans is reportedly looking into a sale that could be valued at up to $600 million, according to Bloomberg.
The private equity firm Golden Gate Capital, which is also the owner of California Pizza Kitchen and Red Lobster, bought the casual restaurant chain for $565 million in 2017. The acquisition came after Bob Evans saw a 2.5 percent drop in same-store sales and closed 41 stores in 2016.
In July, CEO Saeed Mohseni said FSR That restaurants avoided massive sales drops in the early months of COVID, it forecast sales of $780 million and above $65 million in EBITDA for fiscal year 2021, which it called “fairly historic numbers.” He attributes these results to a years-long transformation strategy that included streamlining the menu to focus on core menu items, revamping the chain’s value proposition, shifting toward digital marketing platforms, partnering with third-party delivery companies, and launching a new advertising campaign. farmers.
As part of these efforts, restaurants have invested in hospitality training for off-site businesses and changed physical spaces to be more efficient with take-out orders. Stores also changed over 70 ingredients throughout the menu and eliminated those that could not be used crosswise.
“When we talk about — and I don’t really like the word ‘Turnaround’ — when we talk about continuous improvement of the company, that continuous improvement really started with making operations centered on a consumer-relevant slate,” Mohseni said in July. Reminding people that Bob Evans was born on a farm, and that it’s really about the freshest produce.”
At the time, Bob Evans had nearly 480 stores, down from about 520 in 2017.
Bloomberg reports that Golden Gate and the restaurant are working with financial advisors. A source told the outlet that Bob Evan’s $65 million EBITDA figure points to a valuation of $600 million because family dining chains value multiples of high single digits.
Golden Gate has not decided whether to make a deal, and could decide to keep the restaurant.
Several restaurants traded hands in the casual dining sector last year, as operators and private equity firms took advantage of the opportunities. This includes FAT Brands’ $300 million purchase of Twin Peaks, and the $220 million acquisition by SPB Hospitality of parent company Logan Roadhouse for J.