The owner of more than 180 Burger King and Pizza Hut locations has agreed to buy five more Burger King restaurants for $1.
Tasty Restaurant Group, an affiliate of Los Angeles-based private equity firm Triton Pacific, said that the Burger King locations are in Iowa. Three of the five locations are currently owned by the seller, who Tasty Restaurant Group declined to name. The company is assuming both the assets and liabilities held by each restaurant.
“Without going into specifics on each restaurant, I think it is fair to say that the COVID pandemic is presenting strong opportunities for investors like Tasty Brands, which has a large portfolio of Burger Kings already (economies of scale), an extraordinarily experienced operations group and significant corporate resources that many smaller franchisees don’t,” said a representative from the company.
When the deal closes, Tasty Restaurant Group will own and operate 116 Pizza Hut restaurants and 72 Burger King restaurants in 10 states.
“Quick service restaurants have performed well over the past few months, most notably due to the sector’s ability to quickly adapt to social-distancing requirements with minimal interruption,” Triton CEO Craig Faggen said in a statement.
“We are thrilled to expand our footprint of Burger King restaurants in western-Iowa, which we expect will provide strong cash flow due to improved economies of scale and increased market share.”