In a series of Wall StreetTranscript interviews found on YahooFinance, we took note of some interesting comments regardingthe restaurant sector.We were especially intrigued by a portion ofan interview with KeyBanc Capital Markets analyst Lynne Colliersaying that California Pizza Kitchen and Cheesecake Factory are twochains that private-equity firms could show interest in buying inthe coming year. "I think the M&A activity will pick up," sheis quoted as saying. "It depends on the credit markets, of course,but I expect to see more and more of this."Collierpoints out that both chains are trading well below their historicalvalues. Cheesecake was trading as low as $17.24 this week comparedto a 52-week high of $29.78. California Pizza had dropped to $9.32,compared with $25.23. However, not surprisingly, both stocks havegone up since the report's release.While it's not a restaurantchain, it looks like private-equity firm Catterton Partners isclose to grabbing Restoration Hardware for $179 million.Do you thinkthat private-equity firms will continue their fast pace ofacquiring restaurant and retail companies this year? Or will atough economy dissuade those outfits from making plays in theindustry?

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.