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Activist investor Crescendo Partners has taken an 8.9% stake in troubled casual dining chain O'Charley's Inc. While Crescendo claims it is not seeking to capitalize on the recent trend of restaurant dealmaking, the firm's history of pushing for changes — including deals — could mean O'Charley's, which has a $345 million market cap, will be the next restaurateur on the block.
The casual dining chain, which operates under the O'Charley's, Ninety Nine Restaurants and Stoney River Legendary Steaks brands, is trading near its 52-week low of $13.84 — off from its high of $23.45 earlier in June, which was about the height of the restaurant dealmaking frenzy that culminated in IHOP Corp. acquiring Applebee's. However, Crescendo clearly stated that it was not currently considering taking any activist action, but it may amend the filing in the future to include those possibilities. For now, the hedge fund seems content acquiring shares of the company near O'Charley's 52-week low. Earlier in the year, Crescendo made noise at Topps Co., which was later sold to Michael Eisner's Tornante Co. LLC and Madison Dearborn Partners. — Matthew Wurtzel See SEC filing CategoriesContributed content from Middle market video
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