Nashville-based O'Charley's Inc. said Tuesday that a former restaurant executive who oversaw the sale of LongHorn Steakhouse restaurants has joined the O'Charley's board — a move engineered by a major activist shareholder.
The board's newest member, Philip J. Hickey Jr., was the former CEO of RARE Hospitality International Inc., the owner of LongHorn Steakhouse and The Capital Grille. He worked on that company's roughly $1.4 billion sale to Orlando-based Darden Restaurants Inc. in 2007.
Hickey had held several leadership roles in RARE since 1997, and under his guidance the company expanded from 108 restaurants to 319 locations.
"It's impressive," said Amy Greene, a research analyst with Avondale Partners. "Phil is very well respected in the restaurant industry for what he did at RARE and growing it the way he did."
Hickey's appointment is part of a new agreement announced last month between O'Charley's Inc. and one of its largest shareholders, Crescendo Partners, a New York hedge fund.
Crescendo owns about 12.5 percent of O'Charley's common stock.
As part of that agreement, Crescendo was able to nominate a fourth member to the company's now 12-member board. The board will be reduced to 10 members at the annual shareholders' meeting later this year.
On the same day the agreement was announced, O'Charley's Inc. also reported its longtime CEO and Chairman Gregory L. Burns will retire Feb. 12.
The restaurant company like others in its industry is suffering from declining sales at restaurants open at least a year and fewer guests due to a dismal national economy.
Greene said Hickey's appointment to the board would give O'Charley's "credibility" as the company searches for Burns' replacement.
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