Checkers says the reason for the search for a new strategy is that the company's board believes that Checkers current stock price "is not representative of the financial performance of the company." The stock, which has ranged between slightly under $10 and just under $15 over the past year, climbed $1.43 to close at $13.43 on Monday after the company's announcement of a possible sale or merger. Before Monday's increase, the price had dipped by more than 10% since the first of the year.

Checkers on May 5 reported that earnings for the first quarter ended March 28 totaled $2.5 million, or 21 cents per share, on sales that grew 3.2% to $44.4 million, including a same store sales increase of 6.4% at company-owned units. At the end of the first quarter, Checkers had a system-wide total of 792 stores, of which 205 were company-owned and 587 were franchised. The company's brands include Checkers and Rally's restaurants.

Checkers has plans to expand the chain this year and possibly to accelerate the rate of expansion next year, according to remarks by Keith Sirois, CEO and president, at the May 5 earnings conference call. The chain will open about 10 company units and 30 franchise locations this year, he said in answer to questions from financial analysts. "Particularly on the franchise side," there is room to grow faster, Sirois said. "We think things are happening in a proper way that are going to get us to an accelerated growth plan, but for this year, 30 is probably the number on the franchise side."

Same store sales have increased in 16 out of the last 17 quarters at Checkers, Sirois noted in the company's earnings statement for the first quarter, which also said that it would "develop our brand for further rollout in both existing and new markets."