Chanticleer Signs Letter of Intent to Open up to 10 Little Big Burger Restaurants in Seattle
Chanticleer Holdings, Inc. (NASDAQ: HOTR) ("Chanticleer" or the "Company"), owner and operator of multiple restaurant brands internationally and domestically, today announced that the Company has signed a letter of intent with a financial partner for the roll-out of up to 10 Little Big Burger stores in the Seattle, Washington area. Chanticleer currently owns and operates eight Little Big Burger locations in Oregon.
Under the terms of the agreement, the Company's financial partner will provide the capital to fund the opening of the Seattle stores. Chanticleer will control and operate the new stores. Chanticleer will receive management fees for operating the stores and share profits with its financial partner based upon an 80/20 split until such time as our partner has recouped the original investment. After such time, Chanticleer will then receive 50% of the store earnings plus management fees.
Mike Pruitt, Chairman and CEO of Chanticleer Holdings, commented, "Since we acquired Little Big Burger in September of 2015, our eight locations have performed exceptionally well, generating greater than 20% EBITDA margins and strong cash on cash returns. It is clear that Little Big Burger presents an opportunity for expansion with high returns on investment. The structure of this partnership positions us to drive organic growth by expanding one of our best brands without diluting our shareholders or issuing any equity capital. We have already identified a potential location in the Seattle area and look forward to opening our first store shortly. On a personal note, it is gratifying that one of our significant shareholders recognizes the opportunity with LBB and has agreed to provide this non-dilutive financing that allows us to rapidly expand in the attractive Seattle market."
About Chanticleer Holdings, Inc.
Headquartered in Charlotte, NC, Chanticleer Holdings (NASDAQ: HOTR), together with its subsidiaries, owns and operates restaurant brands in the United States and internationally. The Company is a franchisee owner of Hooters® restaurants in international markets including Australia, South Africa, and Europe, and two Hooters restaurants in the United States. The Company also owns and operates American Burger Co., BGR the Burger Joint, Little Big Burger, and owns a majority interest in Just Fresh restaurants in the U.S.
For further information, please visit www.chanticleerholdings.com
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