AFC Enterprises has announced its intention to explore strategic alternatives for its Cinnabon subsidiary, including a possible sale, as part of AFC's "continued effort to sharpen its strategic focus and maximize shareholder value."
Cinnabon owns the international franchise rights for Seattle's Best Coffee in eleven countries, Hawaii, and U.S. military bases, and these are also expected to be part of any transaction. The company's board of directors has engaged Bear, Stearns & Co. to advise it.
Cinnabon has more than 600 system-wide bakeries and has been a leader in expanding the brand to consumer products and food through licensing agreements. Most recently Cinnabon entered into licensing agreements for Betty Crocker Cinnamon Streusel Muffin Mix, Orville Redenbacher's gourmet popcorn, Lotta Luv LLC lip gloss and lip balms, and Sun-Maid raisin bread.
AFC Enterprises is the franchisor and operator of Popeyes Chicken & Biscuits, Church's Chicken, and Cinnabon, and is the franchisor of Seattle's Best Coffee in Hawaii, on military bases, and internationally.