By Josh Beckerman
Bob Evans Farms Inc., which has faced pressure from activist
investorSandell Asset Management to sell the buildings that house
its restaurants and lease them back, is pursuing "monetization" of
its headquarters site and two manufacturing facilities.
The restaurant operator and packaged-foods maker said it has
hired CBRE Group Inc. for those plans, while it is "actively
evaluating strategic alternatives" for its restaurant
properties.
Bob Evans intends to use proceeds from one or more
sale-leaseback transactions to repurchase stock. The company is
pursuing potential sale-leasebacks for its New Albany, Ohio,
headquarters, and production sites in Lima, Ohio, and Sulphur
Springs, Texas.
Last month, Bob Evans said it planned to close 20
underperforming restaurants. As of Jan. 23, Bob Evans owned and
operated 564 restaurants in the U.S.
Some investors have argued in recent years that some of
America's most iconic brands, including McDonald's Corp., ought to
sell or spin off their real estate holdings.
Late last year, Darden Restaurants Inc. said it would explore
options for monetizing its real-estate portfolio, which includes
some 1,200 restaurants such as Olive Garden and Capital Grille.
Red Lobster underwent a $1.5 billion sale-leaseback last year in
connection with Golden Gate Capital's purchase of the chain from
Darden.
Write to Josh Beckerman at josh.beckerman@wsj.com
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