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Chanticleer Holdings, Inc. (HOTR) Preparing for Grand Opening of Little Big Burger in Portland, Oregon
Chanticleer Holdings, Inc. (NASDAQ: HOTR) kicked off November with the announcement that, during the fiscal quarter ended September 30, 2016, the company achieved its second consecutive quarter of adjusted EBITDA profitability. This milestone came alongside an 18.3 percent year-over-year increase in total revenue, which was attributed primarily to Chanticleer’s rapidly expanding fast casual better burger segment. In a news release, Mike Pruitt, chairman and chief executive officer of Chanticleer, noted that the company’s Little Big Burger restaurants were performing “particularly well” before adding that the brand contributed “significantly to the 19% sequential growth in Adjusted EBITDA from continuing operations” and further validated Chanticleer’s regional brand strategy.
With this regional brand strategy at the forefront of Chanticleer’s near-term growth efforts, it came as little surprise when, before the opening bell on Monday, the company announced plans for the launch of a new Little Big Burger restaurant in Portland, Oregon. The grand opening of the new location, which will be Chanticleer’s ninth Little Big Burger and 40th fast casual better burger store, is set to take place next week in Oregon’s largest city, whose metropolitan area is home to roughly 60 percent of the state’s overall population. Pruitt used Monday’s news release to speak toward the company’s excitement ahead of next week’s grand opening.
“We are very pleased to open up a new Little Big Burger in the Portland area,” he stated. “This store is our first store opening financed with EB-5 capital, which provides attractive, non-dilutive capital to expand our regional brands. Little Big Burger has been performing well with particularly attractive store economics, and we look forward to continuing to strategically utilize EB-5 financing for additional Little Big Burger restaurants as well as our other regional brands.”
As referenced by Pruitt, EB-5 capital stems from a federal government program created to encourage foreign investment in U.S. businesses. In addition to serving as one of the fastest methods for foreign investors to gain permanent residency in the U.S., the program is used nationwide to finance the construction and development of new projects in an increasingly diverse number of industries. EB-5 financing is particularly attractive to those operating within the hospitality sector, as it provides a low cost alternative to more traditional sources of capital while typically presenting favorable financing terms that result in reduced financial risk.
Chanticleer’s newest Little Big Burger restaurant will be located in Portland’s bustling Lloyd District at 1088 NE 7th Avenue.
For more information, visit www.chanticleerholdings.com
