New owners for Back Yard Burgers, plus more posts
Back Yard Burgers attracted Axum Capital as a majority investor, buying out Pharos Capital.
It took a whole lot of explaining, but Back Yard Burgers has attracted a new majority investor, Axum Capital Partners, the Charlotte, North Carolina-based private equity firm. "It was hard" to find an investor to buy out Pharos Capital Group, says CEO Dave McDougall, who had to explain over and over why the brand has 23 company-owned stores and 32 franchised units today, down from a peak of 180 stores in 2007. "A lot of the questions were the same—what had happened to the brand? I almost joked, 'Listen, I can tell you everything that's wrong. I can save you a lot of time'...but I'm really looking for someone who sees what the potential is, and can look past some of the ills and say, you know what? There's something here." Axum Capital believes there's plenty there, and took a majority stake for an undisclosed amount. "David and his team have made great strides and we are pleased to support their next phase of growth," said Edna Morris, Axum managing director, in a statement. McDougall said priorities will be, first, a remodeling program for Back Yard Burgers, which he describes as a "much more bright, airy look and feel." Second is corporate and franchised unit growth.