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Hooters Parent Buys American Roadside Burgers

Chanticleer Holdings, parent of the Hooters chicken chain, announced an agreement to acquire all outstanding share of five-unit burger chain American Roadside Burgers (ARB). Terms of the acquisition were not released.

The signature four-patty Roadstar burger.

ARB like Chanticleer is based in Charlotte, N.C. The concept opened 10 years ago in Smithtown, N.Y. It also operates two locations in Charlotte as well as units in Columbia and Greenville, S.C.

Chanticleer Chairman-CEO Mike Pruitt said in a release that the deal for ARB “is our first departure from our ongoing development of Hooter’s restaurants in foreign countries. This acquisition will in no way change our focus on the development of Hooters restaurants internationally, but American Roadside presents a unique strategic opportunity in a high-growth space.”

ARB’s signature menu item is the four-patty Roadstar burger ($8.95). Other specialties include the Roadside Rally double cheeseburger ($6.95) and Route 66, a double-patty burger with pepper-Jack cheese, bacon and barbecue sauce ($6.95). The menu also includes pulled pork and Philly Cheesesteak sandwiches, salads, chicken wings and hand-scooped milkshakes.

Terms of the preliminary agreement call for Chanticleer to issue 740,000 stock (HOTR) units to the owners of Roadside Burgers, with each unit consisting of one share of common stock, and one five-year warrant, priced at $5. The value of the share exchange will be dependent upon Chanticleer Holding’s stock price at date of closing, which is expected to be Sept. 30, 2013.

1 comment to Hooters Parent Buys American Roadside Burgers

  • Dom

    Not sure I understand Hooters strategy, they already have a full service concept. I would think it better for them to get involved in a QSR.

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