According to a news report in TheStreet, Inc., Carl’s Jr. posted a series of “facetious” tweets Monday (Oct. 9), in which it said Amazon should buy the company or partner with it. The company even said that while the tweets may be silly, the offering to Amazon is entirely serious, according to the report.
John Gordon of Pacific Management Consulting Group told TheStreet that the company, which is a unit of CKE Restaurants Holdings, could be valued at $1.7 billion in a sale, taking into account ten times multiple on its earnings before interest, taxes, depreciation and amortization (EBITDA). The report, which also cited the Nation’s Restaurant News’ ranking report from last year, noted Carl’s Jr.’s average store sales have been flat in recent years. Last year, its average store sales were $1.312 million, roughly in line with the average sales of $1.303 million in 2015.
“Carl’s Jr. sees a synergy between Amazon’s delivery service and [its own $5] meal boxes that just rolled out,” the Carl’s Jr. spokesman told TheStreet. The fast food chain argued in the tweets that there could an opportunity for a partnership in which Amazon has a Dash Button for Carl’s Jr.’s chicken tenders.
The company actually tweeted out 24 of what they are calling “BIG IDEAS” for what Amazon and the fast food chain could do together if the acquisition took place. One of the crazier ideas, according to the report, is having a “Happy Drone Hive” dock on top of the Carl’s Jr. restaurants, from where Amazon’s drones can deploy.
Not surprisingly, Amazon declined to comment on Carl’s Jr.’s overtures, noted TheStreet.