Oprah-Backed True Food Is Raising Capital to Fund Expansion

(Bloomberg) -- True Food Kitchen, which counts billionaire TV mogul Oprah Winfrey among its backers, is considering raising new private capital to fund expansion.

The company, alongside majority shareholder Centerbridge Partners, is speaking to advisers about seeking new equity, said people familiar with the matter, who asked not to be identified because they weren’t authorized to speak publicly.

“I can confirm that we’re raising capital as we continue to grow our restaurants,” said Shannon Keller, True Food’s chief marketing officer, in an emailed statement. A spokesman for Centerbridge declined to comment.

True Food Kitchen sales grew 22.3% in the U.S. last year to $167 million, according to data from researcher Technomic. That outpaced the overall restaurant industry, which saw 3.6% sales growth in 2018. The company has 41 units either open or in development, according to its website.

Phoenix-based True Food, co-founded in 2008 by serial restaurateur Sam Fox, was spun off from the rest of Fox Restaurant Concepts in 2017. The company -- led by chief executive Christine Barone -- has about 30 locations in the U.S., predominantly in California and Texas. It has built its menu around recipes inspired by Dr. Andrew Weil, with ingredients designed to be anti-inflammatory, according to the company’s website.

Winfrey, who invested in True Food in 2018 and has a seat on the board, has been an investor in weight-loss franchise WW International Inc. since 2015. She currently owns about 8% of that business, according to data compiled by Bloomberg.

True Food is opening its first cocktail and juice bar, known as True Bar, in Las Vegas in 2020.

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To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Alan Goldstein at agoldstein5@bloomberg.net, Michael Hytha

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