Kohlberg Kravis Buys Stake in Lemonade Restaurant Group - Analyst Blog

Kohlberg Kravis Roberts & Co. L.P. (KKR), a leading global investment firm, has acquired a minority stake in the Los Angeles-based cafeteria-style chain – Lemonade Restaurant Group. Partnering with Kohlberg Kravis would help Lemonade accelerate its ongoing expansion plans.

Founded in 2008, Lemonade presently operates 14 fast-casual restaurants in a modern cafeteria setting in Southern California. It offers high-quality, chef-driven menu and a highly-customizable experience.

Further, this restaurant company harbors ambitious growth plans within and outside Southern California. It plans to own 40 locations by 2016, focusing initially on adding stores in California, Texas and Hawaii. The company also hopes to expand across Canada, Australia, Europe and Asia through strategic partnerships. Partnering with a high-profile institutional private equity firm will surely aid Lemonade in realizing its expansion plans.

On the other hand, many leading private-equity and venture-capital funds are on the look out for high potential health-focused fast foods chains. Kohlberg Kravis features among these. Moreover, this leading investment firm holds a track record of supporting management teams to pursue their goals. High growth potential of Lemonade might have prompted Kohlberg Kravis to invest in it.

Currently, Kohlberg Kravis carries a Zacks Rank #3 (Hold). Some better-ranked investment managers include Monroe Capital Corporation (MRCC), Brookfield Asset Management Inc. (BAM) and The Carlyle Group LP (CG). While Monroe Capital sports a Zacks Rank #1 (Strong Buy), both Brookfield Asset Management and Carlyle Group hold a Zacks Rank #2 (Buy).