Brad Giles’ Post

Exciting times ahead

Olivia Macdonald, CFA, Deputy CIO at Marylebone Partners LLP, spoke to Founder and CIO of Engaged Capital LLC, Glenn Welling, at our investor day last month. They discussed how Engaged Capital creates long-term value in publicly listed mid-cap companies. Glenn explained how investee company, Shake Shack, started out as a hot dog stand in New York to become a fast-growing multi-outlet quick service restaurant across the US, Europe, MENA and the Far East. Despite this growth, its share price and valuation lagged its peers. What was the recipe for Engaged Capital’s successful strategy to turn the situation around? 1- People matter. Having industry experience at Board and senior management levels is crucial. 2- Domain expertise is important. Engaged Capital’s knowledge of the quick service restaurant sector enabled them to transform the way the kitchens were run and identify cost-savings. 3- Constructive engagement with companies is key. A public squabble is rarely the answer. In the words of Glenn on the role of activism and creating value for shareholders: ‘You can’t make good music unless there is some tension in the strings.’

🚨 BREAKING: Majority stake of high street coffee shop JOE & THE JUICE sold to private equity firm, General Atlantic. Interested in a career in private equity? ☕ Major Move in the Beverage Sector: General Atlantic acquires a majority stake in JOE & THE JUICE, a popular chain known for its smoothies and sandwiches. This deal marks a significant shift, with the company valued at around $600 million. 📈 Strategic Growth Focus: With an emphasis on digital expansion, General Atlantic plans to boost Joe & the Juice's digital sales from 30% to at least 50%, enhancing global operations and market presence. 🤔 Continued Expansion and Success: This acquisition, part of the Nordic region's M&A boom, positions Joe & the Juice for further international growth, building on its strong brand and widespread popularity. Read the FULL article here: https://lnkd.in/eDDdAUz8 🟢 Get 1 month FREE on Monthly Memberships: https://lnkd.in/eBHYx37M #joeandthejuice #privateequity #deals #acquisitions #finance

Roark Capital is rumored to be seeking to take Inspire Brands public. With a proposed valuation of $20 billion, an IPO for the parent company of Dunkin’, Sonic, Buffalo Wild Wings, Jimmy John’s, and Arby’s would be one of the biggest in the sector in over 20 years. While no public statement has yet been made, the possibility that Roark is considering an IPO indicates a shift in market conditions. For up-to-the-minute data on retail real estate cap rates, comparables, and consumer traffic, NNN Trends is an available resource for sellers and buyers of investment retail real estate. Knowing market conditions and trends will help maximize your investment dollars! Check it out here: https://bit.ly/49FU46I #cre #retailrealestatenews #restaurantnews #inspirebrands #commercialrealestate #retail

Tropical Smoothie is being sold to Blackstone for $2 Billion. Is the market for restaurant mergers and acquisitions warming up? Tropical Smoothie Cafe's acquisition by Blackstone for nearly $2 billion signals a significant milestone for the health-conscious chain, which boasts nearly 1,400 locations across the United States. CEO Charles Watson highlights the brand's commitment to exceptional guest experiences, as the sale follows reports earlier last year of Levine Leichtman Capital Partners' intention to sell the company. The move reflects Blackstone's continued interest in the restaurant sector, with recent investments including discussions with Jersey Mike’s and equity participation in 7 Brew. In 2023, Tropical Smoothie achieved impressive financial growth, with systemwide sales reaching $1.25 billion and a substantial increase in unit count. Despite initial considerations for an IPO in 2022, the company opted for acquisition, citing market volatility. In the backdrop of high inflation, subdued profitability, and elevated interest rates, the mergers and acquisitions market has experienced a notable deceleration in recent years. However, there appears to be a shifting trend as buyers are increasingly drawn to quality concepts. Contact us for more restaurant news. Andy Cepeda 📞 (972) 755-5138 ✉️Andy.Cepeda@marcusmillichap.com Vincent Knipp 📞 (972) 755-5205 ✉️ Vincent.Knipp@marcusmillichap.com 👉 Click link for details: https://lnkd.in/gw3Evvef #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #tropicalsmoothiecafe

What's next for Tropical Smoothie Cafe after its acquisition? Private equity funds managed by Blackstone have successfully acquired Tropical Smoothie Cafe from Levine Leichtman Capital Partners, valuing the fast-casual chain at approximately $2 billion according to the Wall Street Journal. This acquisition also introduces Nigel Travis, former CEO of Dunkin’ Brands, as the new chairman of Tropical Smoothie Cafe, marking a significant leadership shift. Founded in 1997 and headquartered in Atlanta, Tropical Smoothie Cafe is a leading franchisor with over 1,400 locations across 44 states. With the new backing from Blackstone, the company is poised for accelerated expansion and innovation. “With Blackstone’s capital and resources, we look forward to accelerating the company’s continued expansion across the country and supporting innovation to further capitalize on the brand’s unique positioning,” said Blackstone executives Peter Wallace and Michael Staub. The acquisition follows significant growth under Levine Leichtman Capital Partners, who acquired the chain in 2020 when it had 870 locations. In 2023 alone, Tropical Smoothie Cafe opened over 175 new locations, with 70% launched by existing franchisees. 👉 Click link for details: https://lnkd.in/gyy7-s7k #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #tropicalsmoothiecafe

Congratulations to our friends at San Francisco-based consumer-focused buyout private equity fund manager Encore Consumer Capital on the acquisition of Chalet Desserts in partnership with founder and CEO David Laukat and the existing management team. Chalet Desserts, based in Sacramento, CA, is a specialty manufacturer of frozen bakery desserts and baked good inclusions that are sold into the in-store bakery at #supermarkets and #convenience stores as well as #foodservice and #ingredient end-markets. The #partnership will focus on add-on acquisitions in the frozen baked goods space. Encore Consumer Capital are one of the US' leading consumer-focused private equity fund managers having raised 4 funds and over $900 million in committed capital and invested in over 40 companies in the sector. Encore Consumer Capital’s current and prior investments include food and beverage manufacturers and marketers, pet products companies, personal care/beauty companies, and food distribution companies. The firm targets companies with between $10 million and $150 million in annual revenues where Encore Consumer Capital’s strong expertise in strategy development, brand marketing, manufacturing and supply chain optimization, and distribution expansion can drive performance. It was great to spend time with the Encore Consumer Capital team in Chicago this past week and looking forward to seeing you again soon! #alternativeinvestments #privateequity #fundmanagers #buyout #consumer #frozenfood #bakedgoods #capitalmarkets #privatemarkets #chicago #sanfrancisco #acquisitions #valuecreation #desserts

Breaking News: Bolthouse Farms Splits into Two Dynamic Entities for Accelerated Growth! 🌱✨ Butterfly is splitting Bolthouse Farms into two entities, Bolthouse Fresh Foods and Generous Brands, to boost growth through focused investments and acquisitions. Bolthouse Fresh Foods will handle carrots, while Generous Brands will focus on beverages and dressings. This move follows Bolthouse Farms' acquisition of Evolution Fresh, expanding its product line. Butterfly's CEO Adam Waglay sees this separation as a strategic step, appointing new CEOs Timothy Escamilla and Steve Cornell to lead each entity toward enhanced customer service and brand strength. #BolthouseFarms #ButterflyGrowth #BusinessExpansion

Will Fat Brands' Twin Peaks and Smokey Bones IPOs Serve Up Financial Relief? Fat Brands has confidentially filed to take its Twin Peaks and Smokey Bones restaurant chains public through an IPO, just days after the company and its chairman, Andy Wiederhorn, were indicted on charges related to an alleged $47 million loan scheme. Both Fat Brands and Wiederhorn have denied the charges. Fat Brands acquired Twin Peaks in 2021 and Smokey Bones in 2023. The company plans to convert more than half of Smokey Bones' 61 corporate-owned locations into Twin Peaks restaurants. The IPO proceeds will be used to deleverage the company’s balance sheet. After a string of acquisitions over the past four years, totaling a half dozen and expanding its portfolio to 17 food service companies, Fat Brands' announcement of its IPO doesn't come as a shock. While these deals have filled its pipeline with over 1,000 units, they've also burdened Fat Brands with $1 billion in debt. Could taking these brands public be the recipe for turning its balance sheet green? Vincent Knipp 📞 (972) 755-5205 ✉️ Vincent.Knipp@marcusmillichap.com Andy Cepeda 📞 (972) 755-5138 ✉️Andy.Cepeda@marcusmillichap.com 👉 Click link for details: https://lnkd.in/gF7ffYNh #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate 

I am looking for cases of good acquisitions. Good for employees, customers, and the value chain. Not just previous and new owners. Can you help me? What sparked my interest: → Vinted fired all 79 Trendsales employees last week, one month after it acquired the business. FYI, Vinted is owned by several VC funds. It made me think of: → Sapporo acquired Anchor Brewing and shut it down last year after being in business for 127 years. → AURELIUS acquired The Body Shop in late 2023, and that business was filed for administration in early 2024. → Nestle acquired Lily's Kitchen (dog food) in 2020, and all the talk in town was that they changed their recipes afterward (rumors only, though, but Google it and see for yourself). I have no problems finding acquisitions "gone wrong," but that's a little one-sided. So, here I am, asking you to help me find good cases. There must be some out there.