(Reuters) - Fried chicken and biscuit fast food chain Bojangles Inc (BOJA.O) is exploring strategic alternatives, including a potential sale, people familiar with the matter said on Friday, making it the latest U.S. restaurant operator to do so.
Dealmaking in the sector is heating up as increasing competition and costs fuel consolidation. Just this week, Inspire Brands Inc, owner of the Arby’s, Buffalo Wild Wings and Rusty Taco chains, said it would buy Sonic Corp SONC.O for $1.57 billion in cash, while sources told Reuters Papa John’s International Inc (PZZA.O), the world’s third-largest pizza delivery company, has put itself up for sale.
Bojangles is working with Bank of America (BAC.N) as it explores its options, the sources said, cautioning that there is no certainty of a company sale. Private equity firm Advent International Corp took Bojangles public in 2015 and still owns just over half the company.
The sources asked not to be identified because the matter is confidential. Bojangles did not immediately respond to a request for comment, while Bank of America and Advent declined to comment.
Reporting by Harry Brumpton and Greg Roumeliotis in New York; additional reporting by Joshua Franklin in New York; Editing by Steve Orlofsky