The parent of 7-Eleven said it will evaluate a sale of the c-store chain and its sister brands as part of a strategic reassessment aimed at allaying pressure from two major shareholders for a corporate streamlining.
The Japan-based company, Seven & I Holding Co., said an initial public stock offering is one of the alternatives it will explore.
The review process is being undertaken by a newly formed Strategy Committee consisting solely of outside directors. The eight-person group indicated in a statement issued Thursday that 7-Eleven’s food strategy will figure into the reassessment. The announcement suggested the chain’s approach needs to be rethought in a market increasingly dependent on private-label retail products and ready-to-eat foodservice options.
The statement hinted that 7-Eleven might occupy the niche between conventional c-stores and “superstore businesses.”
The company has recently been experimenting with several restaurant chains co-branded with its c-stores.
The strategic review comes as Seven & I is under pressure from two shareholders to spin off 7-Eleven, which has about 9,500 namesake stores in the United States. The company is also the parent of the 3,800-store Speedway and 500-unit Stripes c-store chains. The latter’s stores often house a Laredo Taco Co, restaurant, and some feature a relatively new concept called Raise The Roost Chicken and Biscuits.
It is not clear if a 7-Eleven sale would include those other c-store and restaurant brands.
A sale of at least part of the group has been demanded by stakeholders Artisan Partners and ValueAct Capital, which together own about 5.4% of Seven & I.
In addition to contending with the demands for a corporate streamlining, Seven & I has been at war for years with its franchisees. One of the disputes is over 7-Eleven’s requirement that stores remain open 24 hours per day. Franchisees have complained that it has been near impossible to recruit staff for the overnight shift.
Additional reporting was provided by CSP, a Restaurant Business sister medium that covers the c-store business.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.