Koo Koo Roo Sells Color Me Mine Stores
In a bid to shed non-core businesses that have sapped its resources and added to profitability woes, Koo Koo Roo Inc. said Tuesday that it had sold its Color Me Mine chain of paint-your-own ceramics stores.
Terms of the sale and the name of the Canadian company that bought the chain were not disclosed.
Koo Koo Roo executives did not return phone calls, but Mike Rule, attorney for Family Restaurants Inc., which announced plans to acquire Koo Koo Roo in June for about $158 million, said both companies were in a quiet period while the Securities and Exchange Commission reviewed the proposed merger.
Los Angeles-based Koo Koo Roo put the 30-store Color Me Mine chain and its Arrosto Coffee unit up for sale in March. The company said it sold Arrosto in June for undisclosed terms.
The two businesses were deemed hindrances to Koo Koo Roo’s larger namesake flame-broiled chicken eateries and the Hamburger Hamlet restaurant chain it bought last year.
Last month, the company reported its most successful second quarter in five years, logging a record $22.7 million in sales and a loss of just 2 cents per diluted share, the closest the company has come to profitability since it broke even in the first quarter of 1994.
Shares of Koo Koo Roo edged up 3 cents to close at $1.25 on Nasdaq.
In an indication the company may be willing to modify its upscale image that rejects the term “fast food” in favor of “home meal replacement,” Koo Koo Roo also said Tuesday that it plans to open its first drive-through outlet in Las Vegas.
