When Will Bojangles' Stock Recover?
Aficionados of Bojangles Inc's (NASDAQ: BOJA) deep-fried Cajun recipe chicken and mildly addictive biscuits relish the thought of "Bo Time." Yet when will it be Bo Time for the "BOJA" symbol? From its debut on the public markets on May 8, 2015, until the time of this writing, company stock has followed a disappointing course, declining by nearly 50%.
The Charlotte, N.C.-based chain has a 40-year operating history, mostly in the southeastern United States, where it's an iconic brand that enjoys widespread consumer recognition. Expectations were clearly high when Bojangles went public. In the three years leading up to its IPO, for example, Bojangles' had expanded its systemwide store count at a compounded annual growth rate, or CAGR, of 7%, and recorded a revenue CAGR of nearly 13% over the same period.
In its registration filing with the SEC, Bojangles' told investors that it believed it was in the early stages of its growth and could continue to expand systemwide stores, split evenly between company-owned and franchised locations, at a CAGR of between 7% and 8%.
Source: Fool.com
