SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 19, 1999
PICCADILLY CAFETERIAS, INC.
(Exact name of registrant as specified in its charter)
Louisiana 1-11754 72-0604977
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
3232 Sherwood Forest Boulevard,
Baton Rouge, Louisiana 70816
(Address of principal executive offices) (Zip Code)
(225) 293-9440
(Registrant's telephone number, including area code)
n/a
(Former name or former address, if changed since last report.)
ITEM 5. OTHER EVENTS
On January 19, 1999, Piccadilly Cafeterias, Inc. (the "Registrant"), issued
the press release attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Exhibits.
99.1 Press release issued by the Registrant on January 19, 1999
announcing that Registrant has entered into an agreement
with Cobb Investment Company ("Cobb") whereby Cobb will
purchase the Ralph & Kacoo's restaurant chain.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
PICCADILLY CAFETERIAS, INC.
By: /S/ RONALD A. LABORDE
Ronald A. LaBorde
President and Chief Executive Officer
Dated: January 19, 1999
EXHIBIT 99.1
Contact: J. Fred Johnson
Chief Financial Officer
(504) 293-9440
PICCADILLY CAFETERIAS, INC. ANNOUNCES EXECUTION OF A DEFINITIVE AGREEMENT
TO SELL RALPH & KACOO'S
BATON ROUGE, LA. (January 19, 1999) - Piccadilly Cafeterias, Inc.
(NYSE: PIC) today announced the execution of a definitive agreement to
sell the Company's Ralph & Kacoo's seafood restaurants and related
commissary business to Cobb Investment Company ("Cobb") for approximately
$21 million in cash. The parties expect to close the transaction in the
first quarter of 1999. Ralph & Kacoo's currently operates seven seafood
restaurants in Louisiana, Mississippi, and Alabama.
Ronald A. LaBorde, President and Chief Executive Officer of
Piccadilly, stated: "We are pleased to be selling Ralph & Kacoo's to Cobb
Investment Company. We feel that Cobb is an excellent fit for our Ralph &
Kacoo's employees, and we are pleased with the value Piccadilly will
receive for the business. This sale will allow us to focus our efforts
exclusively on our cafeteria business. We plan to use the proceeds from
the sale primarily to pay down debt incurred in the Morrison acquisition."
Thomas Kranz, Vice President and Chief Financial Officer of Cobb,
commented: "Ralph & Kacoo's adds an established, regional restaurant
franchise to our existing portfolio of restaurants. With a history of
providing guests with quality food and excellent service in an entertaining
atmosphere, the Ralph & Kacoo's concept fits very well with our restaurant
philosophy. This acquisition also accelerates the expansion of our
restaurant operations into markets in close proximity to Destin, Florida."
In addition to other holdings, Cobb currently operates several restaurants
in the Destin, Florida area, including the Back Porch, Louisiana Lagniappe,
Cafe Gratzi, and Pompano Joe's; and plans to open in the first quarter
of 1999 a Back Porch, Louisiana Lagniappe and Cafe Gratzi in Orange
Beach, Alabama.
Southcoast Capital L.L.C. has acted as financial advisor to Piccadilly
in this transaction.
Piccadilly currently owns and operates a total of 247 cafeterias and
12 quick service restaurants. Operating units are located primarily in the
southeastern and mid-Atlantic states.
Forward-looking statements regarding management's present plans or
expectations for new unit openings and operating results may differ
materially from actual results. These plans and expectations involve risks
and uncertainties relative to certain factors including return expecations,
allocation of resources, changing economic or competitive conditions,
advertising effectiveness, the ability to achieve cost reductions, and the
ability to offset inflationary pressures through increases in selling
prices, among others, any of which may result in material differences.
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