Photographer: Pierre Bessard/REA/Redux

Checkers Restaurants Said to Be Readied for $500 Million Sale

  • Sentinel Capital working with Piper Jaffray on auction
  • Private equity firm bought Florida-based chain in 2014

The owner of Checkers Drive-In Restaurants Inc. is preparing to sell the hamburger chain in a process that could fetch about $500 million, people with knowledge of the matter said.

Sentinel Capital Partners, which bought Checkers in 2014, is working with investment bank Piper Jaffray Cos to sell the company, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

Representatives for Sentinel, Piper Jaffray and Tampa, Florida-based Checkers didn’t respond to e-mailed requests for comment.

A sale of Checkers this year would represent a short holding period for New York-based Sentinel, which manages $2.6 billion in assets. Private equity firms typically sell their companies after about five years with the aim of approximately doubling their investment.

Checkers generates about $700 million in sales, according to Sentinel’s website. The company, which also operates the Rally’s restaurant chain, produces a range of fast food including the A.1. Buttery Steak Burger and a chili cheese dog, according to its website. It has locations in about 30 U.S. states.

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