Recent leadership changes at Back Yard Burgers, Inc., could signal that the Memphis-based chain is in for some challenging times, observers say.
Late last month the company announced that president and COO Michael Myers had resigned his position effective immediately. It also reported that it would separate the positions of chairman and CEO, jobs currently held by Back Yard founder Lattimore Michael, and will begin a search for a new president. Having the company founder like Michael, 63, step aside from day-to-day operations is sometimes seen as a positive move by shareholders, who may feel those who birthed the baby see only the beauty of their creation and not the warts.
In the meantime, Joseph Weiss, president and COO from 1993-1999 and a significant shareholder and franchisee, was appointed interim COO.
To take over as president, Weiss resigned from the audit committee of the company’s board of directors, which resulted in Back Yard Burgers (Nasdaq: BYBI) falling out of compliance with Nasdaq Stock Market rules. The company received a warning that the stock could be delisted if it doesn’t take steps to come back into compliance.
Bringing back Weiss signals a step backward for the company, says Craig T. Weichmann, a former restaurant analyst with Morgan Keegan & Co.
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