Mill Road Capital LP just completed its purchase of Rubio’s Restaurants Inc. But even beyond that transaction, it’s turning out to be a decent year for private equity-related fish taco news.
The Rubio’s deal, announced in May, values the company at roughly $91 million. Rubio’s, of Carlsbad, Calif., operates, licenses or franchises over 200 restaurants in California, Arizona, Colorado, Utah and Nevada. The company rejected an earlier approach from Levine Leichtman Capital Partners and Alex Meruelo, the founder of California-based chain La Pizza Loca Inc.
Rubio’s said no significant changes are expected. The company’s existing management team remains in place, and founder Ralph Rubio retains an ownership position in the newly private company and continues to be a board member. In a press release, he said “I was excited to open the first Rubio’s in 1983 after traveling to Mexico and camping, surfing and grilling on the beach. Going public in 1999 provided us with the resources to quickly expand. Returning to private ownership will afford us the independence and flexibility to continue to build our unique brand. Rubio’s will continue to offer our guests the freshest, most delicious Beach Mex cuisine.”
Earlier this month, Rubio’s reported second quarter revenue of $48.5 million, compared with $48.7 million in the prior-year quarter. “The ongoing unemployment and housing challenges in the markets we serve, as well as record cool temperatures in Southern California during the second quarter, continued to put pressure on our top line,” the company said, noting that a decline in same-store sales had continued into the beginning of the third quarter.
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