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Hot off the grill.

Hot Off The Grill

"America's fastest growing hamburger chain" is trying to gain additional marketshare through an acquisition with Arkansas connections.

Rally's Inc. of Louisville, Ky., recently signed a letter of intent to buy Maxie's of America Inc. of Tallahassee, Fla. Jim Keet of Little Rock is chairman of Maxie's.

The would-be deal involves a stock swap -- 280,000 shares of Rally's, which is traded over the counter, for all the common stock of privately held Maxie's.

Based on a recent closing stock price of $9.25 per share, that cipers out to a $2.59-million trade.

Maxie's systemwide sales for the 12 months ending March 1991 were $8.8 million. The company owns eight outlets and has 11 franchise operations in northern Florida, southern Georgia and northwest Arkansas.

Rally's has more than 300 stores in 22 states. It did $18.5 million the first quarter of '91, down from $19.8 million for the period ending last December. (Earnings comparisons, etc. are confusing due to a change in fiscal year.)

The stock, not long ago trading at more than $21, has followed sales downward.

The company is terribly tight-lipped. When asked about another acquisition in recent months, we got this response:

"My name is Rochelle. I value my job."
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Title Annotation:Rally's Inc. to acquire Maxie's of America Inc.
Publication:Arkansas Business
Date:May 20, 1991
Words:210
Previous Article:Zipping right along.
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