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* There’s A Sucker Born Every Minute!

Posted on October 10th, 2013 · Desserts Fast Food Music/Events/Other Stocks

* There’s a Sucker Born Every Minute!

I just finished reading a “Bloomberg” article as to how self-serve frozen yogurt company-Orange Leaf is looking for acquisition candidates (other food areas)—as the company readies an Initial Public Offering (IPO) of its common stock for sometime in either 2014 or 2015.

Jeff Eats will say no more…

11 Comments to “* There’s A Sucker Born Every Minute!”

  1. ZXE says...

    jeff,
    unless orange leaf acquires a real business, investing in a stock offering would be like investing in a buggy whip company.

  2. LOUIE GOLD says...

    betcha many of its franchisees are sorry they ever got involved in this business.

  3. RRF21 says...

    Orange Leaf on Jog Road in Boca went out of business.
    There is absolutely nothing special about this chain. These self serve yogurt stores are literally a dime a dozen.
    For sure they need a companion business because the yogurt part is nonsense.
    Bet you this one never goes public.

  4. Ted F says...

    By 2015 this chain has a better chance of being bankrupt than going public.

  5. Sid L. Turner says...

    Crap business.

  6. walt t says...

    if the frozen yogurt business was so strong, orange leaf wouldnt be looking for acquisitions to bolster the usiness

  7. STOCKMAN says...

    i wouldnt be looking for an ipo so fast here.Orange is a nothing special company in a nothing special industry.

  8. ken W. says...

    I agree with a fail as a stock. I will say I think this is the best tasting frozen yogurt of the group. The location on 441/Lake Worth rd. is always crowded. My kids love it.

    • jku says...

      -Yogurt IPO

      By Leslie Picker – Oct 10, 2013 9:00 PM PT .
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      Orange Leaf Holdings LLC is seeking takeovers as the self-serve frozen-yogurt chain plans for a potential initial public offering, said Chief Executive Officer Reese Travis.

      An IPO is possible in 2015, though the Oklahoma City-based company may conduct the sale sooner if it finds an acquisition target that it could pay for with funds raised in public markets, Travis said in a telephone interview.

      Orange Leaf’s IPO would follow offerings at restaurant chains Noodles & Co. (NDLS) and Potbelly Corp. (PBPB), which more than doubled on their trading debuts this year after raising a combined $232 million. The Bloomberg U.S. Quick Service Restaurant Index, which includes McDonald’s Corp. and Yum! Brands Inc. (YUM), had surged 34 percent in the year through yesterday, compared to a 18 percent gain in the Standard & Poor’s 500 Index.

      “Investors are showing that there’s demand for these types of concepts,” Travis said. “The success of Noodles, the success of Potbelly and all other brands that are out there shows that the market is ripe for concepts like Orange Leaf.”

      With more than 300 locations, Orange Leaf projects system-wide sales of $100 million this year, up from $80 million last year, Travis said. Its competitors include Pinkberry, which is backed by Maveron LLC, a venture-capital firm co-founded by Starbucks Corp. (SBUX) founder Howard Schultz.

      TCBY Enterprises Inc., which stands for “The Country’s Best Yogurt,” was started in 1981 and has about 650 stores around the world. TCBY is a unit of Famous Brands International, which is owned by Z Capital Partners.

      Market Statistics

      Orange Leaf had about 6.4 percent of the U.S. frozen-yogurt market as of October 2012, according to the latest industry report from IBISWorld, a market-research firm. Competitors TCBY and Pinkberry each held more than 16 percent each, the report showed.

      Travis, 35, previously worked for hedge funds managed by Wexford Capital LP, covering oil and natural-gas services. He became an Orange Leaf franchisee before acquiring the company for about $5 million in 2010, he said.

      He owns 75 percent of Orange Leaf along with another investor, whom Travis declined to identify. Travis’s friends and family members own the other 25 percent, he said.

      To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

      To contact the editor responsible for this story: Jeffrey McCracken

  9. Ralph says...

    This chain will be bk in short order.
    These self serve yogurt joints are just a fad and now a dying fad at that.

  10. TGA says...

    I live in a small town in nj.
    There are 6 self serves there.
    This can’t last for long.
    Orange Leaf will never be an ipo.

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