Benihana Inc. Provides Update on Strategic Review; Engages Jefferies & Company, Inc. to Pursue Sale Process
September 23 2010 - 8:00AM
Business Wire
Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation’s
largest chain of Japanese theme and sushi restaurants, today
announced that its Board of Directors has engaged Jefferies &
Company, Inc. as its exclusive financial advisor in pursuing a sale
of the Company. The Company previously announced its decision to
explore strategic alternatives available to the Company, including
a possible sale, in an effort to maximize shareholder value.
Richard Stockinger, President and Chief Executive Officer, said,
“In July, as part of our Board’s commitment to exploring all
avenues for maximizing shareholder value, we announced that we
would be conducting a formal review of strategic alternatives,
including a possible sale of the Company. The appointment today of
Jefferies & Company, Inc. as our exclusive financial advisor is
the next step in our sale process. Although there can be no
assurance of any transaction at the end of the process, we expect
Jefferies & Company, Inc. to leverage its significant
restaurant financial advisory experience and capital markets
background in assisting and advising us during the sale
process.”
“At the same time, we remain focused on our operating strategies
for strengthening the Company. For example, we believe our Benihana
Teppanyaki Renewal Program is already delivering significant value
to our guests and our shareholders. Under the Program, we
implemented a comprehensive set of initiatives to restore and
enhance the value of our flagship brand with a view towards
creating future profitable growth for shareholders. This Program is
already driving positive top-line performance, with consistent
outperformance of the Benihana Teppanyaki brand against its peers
in 34 of the last 36 weeks. We believe the Company is now
well-positioned to gain valuable operating leverage and deliver
sustainable, profitable growth going forward,” said Mr.
Stockinger.
Since its rollout last fall, the Renewal Program has reinforced
the Company’s pillars of quality food, entertainment and an
unparalleled guest experience. The Program included a review of
each element of the Benihana Teppanyaki brand, and the
implementation of a number of initiatives, which resulted in
significant improvements, including:
- numerous upgrades to food
quality;
- an enhanced beverage
program;
- updated and repaired
facilities;
- a comprehensive purchasing
program for increased cost efficiencies;
- retrained staff in cooking
techniques and service standards;
- restructured and upgraded field
management;
- retention of third parties to
monitor and audit store-level operations on a regular, standardized
basis;
- revamped human resources
including updated job descriptions, titles, policies and incentive
plans;
- reinforced standards within our
franchise system; and
- outsourced infrastructure
functions and reduced overhead.
And because the motivation behind the Renewal Program was always
the guests, it is especially significant that this was accomplished
without any increase in entrée menu prices.
To coincide with the Renewal Program, a number of new marketing
programs were launched to enhance communication with current guests
and to attract new ones. The Chef’s Table is our email program that
shares upcoming specials, promotions and offers and honors each
member’s birthday with a $30 gift certificate. This program has now
registered 1.25 million members since April 2009. And for the
younger guests, over 135,000 Kabuki Kids members under the age of
13 receive a souvenir mug when they visit any of the restaurants
during the month of their birthday.
“Our entire Benihana organization is striving to improve upon
our progress with the Benihana Teppanyaki concept, and extend the
reach of our Renewal Program into our RA Sushi and Haru brands. By
pairing the Board’s intent to pursue a sale of the Company with
this effort, we are demonstrating our multi-faceted commitment to
providing maximum value to shareholders,” concluded Mr.
Stockinger.
The Company does not intend to disclose developments with
respect to the progress of its sale process until such time as the
Board has approved a transaction or otherwise deems disclosure
appropriate.
About Benihana
Benihana Inc. (NASDAQ: BNHNA; BNHN) operates 97 restaurants
nationwide, including 63 Benihana Teppanyaki restaurants, nine Haru
sushi restaurants, and 25 RA Sushi Bar restaurants. In addition, 20
franchised Benihana Teppanyaki restaurants are operating in the
U.S., Latin America and the Caribbean.
To learn more about the Company and its three Japanese theme and
sushi restaurant concepts, please view the corporate video at
www.benihana.com/about/video
Safe Harbor Statement
Matters discussed in this press release contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 that
involve substantial risks and uncertainties. Actual events and
results could differ materially from those contained in the
forward-looking statements. The Company cautions that, while it has
determined to engage Jefferies & Company to advise and assist
in the sale of the Company, there is no assurance that the sale
process will result in a sale of the Company or any other
transaction. There is also no assurance regarding the timing of any
transaction that the Company may elect to pursue. The
forward-looking statements are also subject to a number of other
risks and uncertainties which may impact the Company’s ability to
maximize shareholder value. These risks and uncertainties include,
but are not limited to, those related to the Company’s business
strategy, including the Renewal Program and the Company’s marketing
programs, and the Company’s other efforts with respect to its
Teppanyaki, RA Sushi and Haru brand. In addition to the risks and
uncertainties identified above, reference is also made to other
risks and uncertainties detailed in reports filed by the Company
with the Securities and Exchange Commission.
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