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Back Yard Burgers Appoints Dave McDougall as New CEO


Back Yard Burgers Appoints Dave McDougall as New CEO

Back Yard Burgers, Inc., the popular Nashville-based quick-service burger chain, announced today the appointment of foodservice veteran David McDougall as the company’s new chief executive officer effective immediately.

McDougall, who has a successful track record as a senior leader in both QSR and full-service restaurants, joins the 85-unit chain, with more than 30-years-experience in franchising, operations, international and supply chain management. Throughout his foodservice career, McDougall earned a reputation for operations optimization, financial engineering, technology enhancements and international expansion, as well as team leadership.

“Dave has built an enviable career based on integrity, inspiring others and understanding the needs of both franchisees and franchisors. He brings the whole package to our brand and we couldn’t be more delighted,” said Jim Phillips , Chairman of the Board of Directors of Back Yard Burgers, Inc.   “As the next chapter unfolds for the company with our emergence from restructuring and our fresh new start, we feel that Dave’s seasoned leadership will be invaluable in returning the Back Yard brand to one of prominence.”

McDougall joins Back Yard Burgers from FranIntel, Inc., an Atlanta-based financial and operations C level services firm supporting emerging to midsize franchisors, where he served as president for two years.

This announcement comes on the heels of Back Yard Burgers’ pre-arranged Chapter 11 Bankruptcy filing and subsequent reorganization plan, both aimed at protecting the brand’s value, which enjoys wide acceptance across a broad spectrum of consumers.

The restructuring plan, which did not include franchise-owned locations and had full support of both the Company’s owner and secured lender, was recently confirmed by the U.S. Bankruptcy Court for the District of Delaware. The company now has 22 company-owned and 63 franchised locations in 20 states.

Prior to his tenure at FranIntel, McDougall served as the senior vice president of QSR operations for NexCen Brands, Inc., a multi-brand franchise company based in Atlanta. NexCen operated such brands as Marble Slab Creamery, Great American Cookie and Pretzel Maker, had over 1,200 locations with annual sales of $375 million and operated in twelve countries before being sold to Global Franchise Group.

Previous to NexCen, McDougall spent twelve years with Cinnabon in various capacities, including as vice president of operations at FOCUS Brands, a multi-concept franchise company owned by Roark Capital.

For more information visit: www.backyardburgers.com.

Back Yard Burgers Appoints Dave McDougall as New CEOBack Yard Burgers operates and franchises quick-service restaurants in 20 states, primarily in markets throughout the Southeast. The restaurants specialize in charbroiled, freshly prepared, and great-tasting food, all at moderate prices. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients, special care and prep methods typified by outdoor grilling. Its menu features made-to-order, gourmet Black Angus hamburgers, chicken sandwiches charbroiled over an open flame, fresh and creative salad offerings, chili, and other specialty items, including hand-dipped milkshakes, fresh-made lemonade, and freshly baked cobblers.

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Back Yard Burgers Announces Final Phase Restructuring Plan


Back Yard Burgers, Inc., a leading regional quick service restaurant chain, today announced the final phase of a plan to restructure debt, reduce operating expenses, and position Back Yard Burgers to grow its business, including opening more locations throughout its targeted markets domestically and internationally.

The restructuring plan has the support of both the Company’s majority owner and secured lender.

“We are pleased to have reached an agreement with both our majority owner and our lender that will allow Back Yard Burgers to strengthen our financial core and position the Company to reinvest in our business, improve the customer experience and open new locations,” said James E. Boyd, Jr., the Company’s Chief Executive Officer. “This agreement is the culmination of an ongoing plan to improve the Company’s operations by restructuring debt, addressing underperforming locations and identifying opportunities for growth.

“As always, our entire focus is on finding new ways to improve our business by better serving our customers, either with more menu options, the most comfortable restaurants, or new locations,” Mr. Boyd said. “The plan we are announcing today will ensure Back Yard Burgers can continue providing high-quality food with our signature big and bold backyard taste for years to come.”

In order to implement the agreement, the Company today filed a pre-negotiated Chapter 11 reorganization plan with the U.S. Bankruptcy Court for the District of Delaware. The filing does not include franchise-owned locations. Having already obtained the consent of its secured lender, the Company anticipates the restructuring process will be completed in early 2013.

Additionally, the Company’s majority owner has committed to provide additional financing to support operations during this process. The financing requires Court approval.

“Having an agreement with two of our major stakeholders provides an increased level of certainty that we thought was important, for not only the Company and our customers, but for our loyal employees and business partners,” Mr. Boyd said.

The Company has requested Court authority to pay vendors it deems critical to its business for goods and services provided prior to the October 17 filing date, as long as the vendors agree to continue current terms. All ongoing suppliers will be paid for goods and services provided on or after the October 17 filing date.

Operations are expected to continue as normal during this process, locations remain open, and operators of the approximately 65 franchise locations can continue to rely on Back Yard Burgers for support. Additionally, the Company continues to accept requests for new franchise locations.

Back Yard Burgers previously completed the operational phase of its restructuring, which included a comprehensive review of all of the Company’s more than 40 restaurants, as well as operational efficiencies at the corporate level. The review recently resulted in the closure of 19 Company-owned locations due to underperformance and prohibitive costs. Back Yard Burgers is continuing to review the performance of all locations to ensure they are operating efficiently and supporting the Company’s overall financial goals.

“Like any company in this challenging economy, we had to make the difficult decision to close underperforming locations in order to focus our resources and vision for the future on the rest of the business,” Mr. Boyd said.

For more information, please visit www.backyardburgersrestructures.com. Additionally, the Company has set up a toll-free restructuring information hotline at 888-925-4588.

Back Yard Burgers operates and franchises quick-service restaurants in 20 states, primarily in markets throughout the Southeast region of the United States. The restaurants specialize in charbroiled, freshly prepared, great-tasting food. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches charbroiled over an open flame, fresh salads, chili, and other specialty items, including hand-dipped milkshakes, fresh-made lemonade, and fresh-baked cobblers.

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