TGI Fridays, the popular bar and grill chain known for its delectable potato skins, chicken wings, and endless appetizers, has announced plans to go public by merging with its U.K. franchisee, Hostmore. This all-share deal is valued at an impressive 177 million pounds ($220 million) and if it successfully concludes, TGI Fridays will become a publicly traded company on the London Stock Exchange under the ticker symbol “TGIF.”
Despite going public, TGI Fridays intends to maintain its headquarters for both its U.S. and global brand operations in Dallas, Texas. The CEO of the company, Weldon Spangler, who has been leading the organization since October, will continue in his current role. Spangler expressed his excitement about the merger, stating that it is a significant step in their journey as it will increase their corporate-owned restaurant locations and provide capital to further expand their global presence.
The merged entity will own a total of 189 restaurants in the United States and the United Kingdom, while the chain’s remaining approximately 400 locations worldwide will continue to be operated by franchisees. This global footprint spans an impressive 44 countries. The merger is expected to close in the third quarter, pending approval from regulators.
TriArtisan Capital Advisors acquired TGI Fridays from Carlson Restaurants, its previous long-time owner, in 2014 for a reported value of over $800 million. TriArtisan also holds stakes in other well-known restaurant chains such as P.F. Chang’s and Hooters. TGI Fridays had initially planned to go public in 2019 through a merger with a special purpose acquisition company, but this deal fell apart due to the financial market turbulence caused by the Covid-19 pandemic.
Despite the challenges posed by the pandemic, TGI Fridays managed to achieve a 3.6% increase in revenue in 2022, reaching $75.2 million according to U.S. franchise disclosure documents. However, the chain has faced difficulties as shopping malls decline and the casual-dining segment experiences a decline in customers. Earlier this year, TGI Fridays had to close down 36 underperforming restaurants in the United States as part of its turnaround strategy.
The merger with Hostmore presents an opportunity for TGI Fridays to revitalize its brand and expand its presence globally. By going public, the company will have access to additional capital, enabling it to invest in new restaurant locations and implement innovative strategies to attract customers in an evolving market. TGI Fridays remains committed to providing its loyal patrons with the same delicious food and enjoyable dining experience that they have come to love.
In conclusion, TGI Fridays’ announcement to go public through a merger with its U.K. franchisee marks an exciting new chapter for the popular bar and grill chain. With a valuation of 177 million pounds ($220 million), TGI Fridays will soon be publicly traded on the London Stock Exchange, while maintaining its headquarters in Dallas, Texas. The merger will increase the company’s corporate-owned restaurants and provide capital for global expansion. By leveraging this opportunity, TGI Fridays aims to overcome industry challenges and continue serving its signature dishes to customers worldwide.
