Cheddar's Restaurants

Location: Dallas, TX
Phone: (214) 596-6700
Status: Exited in 2006
Cheddar's Cheddar's Cheddar's

Cheddar’s Restaurants is a leading owner and franchisor of casual dining restaurants under the "Cheddar's" and "Fish Daddy's" brands. Cheddar’s was founded in 1978 by Aubrey Good and Doug Rogers and, operates over 60 restaurants throughout the Midwest, Southeast and Southwest. The Cheddar's concept is to provide high-quality "American" food (i.e. chicken, steak, ribs, sandwiches, salads, etc.) in a casual atmosphere at a reasonable price. Cheddar's has created one of the leading casual dining brands in each of its markets.

Background to the Transaction

Founded in 1978 by Aubrey Good (CEO) and Doug Rogers (President), Cheddar’s opened in first restaurant in Arlington, Texas (proximate to Dallas) and had modestly grown its store base in the subsequent 25 years. The Company was majority-owned by Aubrey Good, Doug Rogers and Greg Good, Aubrey’s son and the Company’s COO, with the balance of the Company’s shareholder base consisting of non-management shareholders that had participated in the initial capital raise in 1978. Brazos was introduced to Aubrey Good, Doug Rogers and Greg Good in late 2002 at which time they were exploring strategic alternatives for the Company. The management shareholders desired a transaction that would provide full liquidity for the non-management shareholders and capital to support an expansion of the store base and partial liquidity for the management shareholders. Brazos engaged in a dialogue with the management shareholders that ultimately resulted in a recapitalization of the Company in November 2003 that accomplished the objectives of the shareholder group. Aubrey Good, Doug Rogers and Greg Good continued in their respective roles following the transaction and remained significant shareholders in the Company.