Bojangles’ $1.5B Sale in the Works: Can Growth, Value Hold Up Beyond the Deep South?

Bojangles appears to be positioning itself for a major transaction, likely a sale, given its engagement with investment bankers and its owners’ potential willingness to capitalize on the current heated chicken segment in restaurants. The reported target valuation of around $1.5 billion is nearly three times what it fetched in 2019—signaling that its backers believe current growth, market momentum, and strategic positioning can support a high-multiple deal.

Underlying this sale consideration is strong demand in the chicken category. Chicken-based chains saw ~9% growth in U.S. chain restaurant sales last year, compared to ~1% for burger-focused chains. Fast-casual chicken concepts performed even more strongly (~24%) in certain instances. This trend is reinforced by Tyson Foods’ upward revision of its revenue outlook driven by resilient chicken demand. Collectively, these trends suggest broader macro tailwinds — rising protein costs, evolving consumer preferences — favor poultry-centric brands.

Bojangles has used this moment to expand aggressively into new geographies and modernize its operations. Its recent progress includes an expanded pipeline (adding over 270 units), opening new locations in previously unserved states like New York and Colorado, multiple large franchise agreements (e.g., 20 units in New York, 35 in New Jersey), and simplifying its menu offering—particularly emphasizing boneless chicken in growth markets. It is also updating its restaurant prototype and staffing model to reduce operational complexity and improve throughput.

However, strategic challenges remain. To sustain a $1.5B valuation, Bojangles must continue proving its model works outside its core Southeast footprint. Fierce competition in chicken from brands like Chick-fil-A, Popeyes, Raising Cane’s, Wingstop, and incumbents iterating on chicken offerings means market share gains are contested. Also, expansion costs, supply chain pressures, commodity inflation (e.g. beef vs chicken) and potential margin erosion from discounting or promotional deals are downside risks. Finally, buyer appetite will depend on evidence of consistent capex discipline, unit economics across new vs legacy markets, and brand strength in diverse demographic and geographic settings.

Open questions include: what earnings before interest, tax, depreciation, and amortization (EBITDA) Bojangles is currently generating, especially its margin profile in newer vs. established markets; how sustainable the boneless-first menu strategy is among customers; which strategic or financial buyers could realistically pursue the acquisition; and whether the chain will choose to sell or continue private equity ownership to fund further growth.