General Electric Company (NYSE:GE) Capital’s Franchise Finance business announced that it has provided a $30.7 million loan to Serazen, LLC to refinance debt and to acquire and re-image 50 Hardee’s® units in Greensboro and Wilmington, N.C. and Columbia and Florence, S.C.
As part of the acquisition, Serazen has also agreed to build 14 new Hardee’s restaurants over the next six-and-a-half years in those markets. Based in Orange, CA, the company currently owns and operates 69 Papa John’s units.
“As part of our Hardee’s refranchising initiative, we sold restaurants in four markets across the Carolinas to Serazen, a strong, well-respected operator that’s committed to growing our brand,” said Jim Sullivan, senior vice president, domestic franchise development, at CKE. “GE Capital’s responsiveness and expertise in the capital markets, the restaurant sector and these types of transactions were an integral part of bringing this deal to a successful close.”
CKE Restaurants Holdings, Inc., through its operating subsidiaries, owns, operates and franchises quick-service restaurants under the Hardee’s and Carl’s Jr.® banners. Its system includes more than 3,500 restaurant locations in 44 states and in 35 foreign countries and U.S. territories worldwide.
“GE Capital’s focus on the restaurant industry enabled them to support our strategy to expand into a new restaurant brand,” said Doug Pak, president of Serazen. “I’m grateful to have them as a financing resource to rely on throughout the process.”
“Our experience with refranchised transactions allowed us to provide Serazen with certainty of execution and a quick close,” said Todd Cortell, a managing director with GE Capital, Franchise Finance. “It’s always a pleasure to see our customers grow and thrive in their communities.” (Original Source)
Shares of General Electric opened today at $26.12 and are currently trading slightly down at $25.96. GE has a 1-year high of $28.68 and a 1-year low of $23.41. The stock’s 50-day moving average is $26.67 and its 200-day moving average is $25.95.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on July 20, UBS analyst Shannon O’Callaghan reiterated a Buy rating on GE, with a price target of $32, which implies an upside of 22.5% from current levels. Separately, on June 26, William Blair’s Nicholas Heymann reiterated a Hold rating on the stock and has a price target of $30.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Shannon O’Callaghan and Nicholas Heymann have a total average return of 17.0% and 1.6% respectively. O’Callaghan has a success rate of 79.5% and is ranked #152 out of 3724 analysts, while Heymann has a success rate of 44.4% and is ranked #2332.
The street is mostly Bullish on GE stock. Out of 7 analysts who cover the stock, 4 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $33.00, which represents a potential upside of 26.3% from where the stock is currently trading.