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Louisiana-based Raising Cane’s fast casual chain touts 33% revenue jump

A Raising Cane's fast casual restaurant in the East Village neighborhood of New York, on Saturday, Jan. 27, 2024. MUST CREDIT: Bing Guan/Bloomberg (Bing Guan/Bloomberg)
By Michael Tobin bloomberg

Raising Cane’s Restaurants LLC has told debt investors its revenue increased more than 30% in the first six months of this year as it continues to expand its footprint, according to people familiar with the matter.

The Baton Rouge, Louisiana-based chain reeled in $2.3 billion in revenue from January through June, compared with $1.7 billion in the first six months of 2023, according to the people, who asked not to be named discussing a private transaction, and offering documents from a bond sale last year. In the latest quarter, revenue was $1.2 billion.

Privately owned Raising Cane’s, known for its chicken fingers, boasts more than 800 locations across the US and abroad, according to its website. Bond offering documents reviewed by Bloomberg reported more than 720 locations as of June 2023. Its expansion has also helped turn founder Todd Graves into a multi-billionaire, given his roughly 90% stake in the business, Bloomberg reported last year.

After the updated financials are accounted for, his net worth will jump by $3.3 billion to $10.2 billion, according to the Bloomberg Billionaires Index. That moves his ranking among fellow billionaires to about 250 from 423, according to the index.

Adjusted earnings before interest, taxes, depreciation and amortization were $464 million in the first half of 2024, up 26% from the prior year period, the people said. Excluding rent, that same figure was $538 million, a 28% increase from the same six months of 2023. Adjusted earnings over the last twelve months was $856 million, or $999 million when adjusted for rent.

A representative for Raising Cane’s declined to comment.

Raising Cane’s is accessing debt markets for the second time, tapping the US leveraged loan market this week to sell a $500 million loan to repay borrowings under its revolver and for general corporate purposes. Initial pricing on the loan calls for a spread of 225 to 250 basis points over the Secured Overnight Financing Rate, offered at a discounted price of 99.5 cents on the dollar, a separate person said.

The company sold $500 million in bonds last fall in its first note sale.

—With assistance from Tom Maloney and Jeannine Amodeo.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.