Why Was the Market Happy to See Bojangles' CEO Head for the Door?

In this segment of the Motley Fool Money podcast, host Chris Hill, Million Dollar Portfolio's Jason Moser and Matt Argersinger, and Total Income's Ron Gross, check in on fried-chicken niche player Bojangles Inc. (NASDAQ: BOJA), where former CEO James "Randy" Kibler is taking over temporarily in the wake of Clifton Rutledge's departure for "personal reasons." Is this restaurant company going to keep flying solo, or will some larger operator add it to its flock?

A full transcript follows the video.

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This video was recorded on March 9, 2017.

Chris Hill: Bojangles' stock got a boost this week when CEO Clifton Rutledge abruptly resigned for personal reasons. Former CEO Randy Kibler is stepping in as interim CEO while Bojangles' board looks for a permanent replacement. Jason, are you interested in either the job or the stock?

Jason Moser: If I had a card as the CEO, it would just be, "CEO: The Jangler." I think the toughest part for Bojangles is, they literally do have all of their eggs in one basket. It's just that one concept. In a market where it seems like we're witnessing a lot of consolidation, to have a number of different brands under one umbrella, I think about Restaurant Brands, with Burger King and Popeyes in Tim Hortons, Yum! Brands, obviously, with Pizza Hut, KFC, Taco Bell. They are at least kicking this around that perhaps Inspire would be looking to acquire Bojangles. Inspire has Arby's, Buffalo Wild Wings, and R Taco. So, I do feel like, when you look in the space, it's very competitive. KFC and Popeyes Kitchen are bigger companies, and they're bringing better sales numbers to the table than Bojangles is today. So it may be just a matter of time before this is a concept that's rolled into a bigger company.

Hill: I was going to say, this absolutely seems like a profitable concept under someone else's umbrella. You and I have talked about this before. You grew up in the South, Bojangles was very much in your wheelhouse. Not so much for me, growing up in New England. But, it really does seem like a concept that works.

Moser: It is very, very good food. If you like chicken and biscuits and all those Southern sides --

Hill: Who doesn't?

Ron Gross: Who doesn't?

Hill: What kind of inhuman monster doesn't love chicken and biscuits?

Moser: They're out there, Chris, believe it or not.

Chris Hill has no position in any of the stocks mentioned. Jason Moser has no position in any of the stocks mentioned. Matthew Argersinger has no position in any of the stocks mentioned. Ron Gross has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.