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Fast Food Insights January 08 2025

THCH Announces Reverse Stock Split

TH International Limited (THCH), a China-based company listed in the U.S., has implemented a 1-for-5 reverse stock split, effective as of December 31, 2023. This corporate action reduces the total number of shares outstanding while increasing the value of each share proportionally. The adjusted shares will begin trading on the split basis starting January 13, 2025. This move, detailed in the company’s 6-K filing.

Source:

SEC Filing

Potbelly Switches Auditors from Deloitte to KPMG

Potbelly Corporation (PBPB) has announced a significant shift in its auditing relationships. Following a comprehensive competitive selection process, the company’s Audit Committee decided to appoint KPMG as its new independent auditor, replacing Deloitte.

Source:

SEC Filing

Kelly’s Roast Beef Acquired by AAM15

Massachusetts-based Kelly’s Roast Beef, chain with 15 locations, has been acquired by AAM15, a private equity firm specializing in hospitality, real estate, and quick-service restaurants. Known for its iconic roast beef sandwiches, Kelly’s will benefit from AAM15’s expertise in scaling brands within the food service. This acquisition marks AAM15’s continued investment in QSR brands, demonstrating its strategic focus on regional chains with strong brand equity and loyal customer bases.

Why it matters: The deal showcases growing private equity interest in regional restaurant chains with expansion potential.

Market implications: Kelly’s Roast Beef could see accelerated growth and operational changes under AAM15’s management, possibly expanding its geographic footprint.

Sources:

Yahoo Finance Article

White Castle Names Anthony Joseph as New President

For the first time in its over 100 years history,White Castle, the iconic slider brand, has appointed a non-family member as its president. Anthony Joseph, a seasoned leader with significant experience in the restaurant industry, takes the helm. Despite this leadership change, the chain remains under the ownership of the Ingram family, with Lisa Ingram continuing as CEO and Board Chair.

Why it matters: Breaking tradition by hiring outside leadership signals White Castle’s intent to innovate and modernize in a competitive QSR market.

Industry impact: Joseph’s presidency may usher in operational changes or strategies aimed at expanding White Castle’s influence beyond its current markets.

Sources:

PR Newswire

Presto Automation Sold with $18 Million Capital Infusion

Presto Automation, a company specializing in AI-powered drive-thru solutions, has been sold following financial struggles, including a default on its loan from Metropolitan Partners. A consortium led by former investor Remus Capital and partnering with such as Metropolitan Partners and Link Ventures completed the acquisition, with an $18 million capital infusion to stabilize operations. Formerly listed on NASDAQ, Presto struggled after pivoting from tabletop tablets to drive-thru AI technology. Despite these challenges, the company still counts notable QSRs like Taco John’s and Carl’s Jr. as clients.

Why it matters: Presto’s struggle highlights the risks of rapid technological pivots in a competitive industry but also underscores the potential of AI to transform QSR operations.

Future outlook: With renewed funding, Presto has an opportunity to refine its offerings and expand its client base, though profitability remains a key challenge.

Sources:

GlobeNewswire

Bloomin’ Brands Names Pat Hafner as President of Outback Steakhouse

Pat Hafner, a seasoned executive with over 21 years at Outback Steakhouse, has been promoted to President of the brand. Hafner previously served as President of Carrabba’s Italian Grill, another chain under the Bloomin’ Brands umbrella. Outback, a flagship brand for Bloomin’ Brands, has been a cornerstone of the company’s success, and Hafner’s leadership will likely focus on sustaining growth and innovation.

Why it matters: Promoting an internal veteran ensures continuity and leverages institutional knowledge, a critical factor for long-term brand success.

Sources:

Official Release

SEC Filing