NPC International, Inc. announced today that it has acquired 140 Wendy’s restaurants, previously operated by DavCo Restaurants LLC, from a subsidiary of The Wendy’s Company. Overland Park, Kansas-based NPC has agreed to remodel 90 acquired restaurants in Wendy’s current restaurant buildout by the end of 2021 as well as build 15 new Wendy’s restaurants by the end of 2022. It now is the owner of 386 Wendy’s franchises in seven states.
This acquisition was funded solely with cash proceeds from the company’s recent refinancing. The restaurants are owned and operated by NPC’s wholly owned subsidiary, NPC Quality Burgers Inc. NPC International Inc. is also the world’s largest Pizza Hut franchise owner, operating 1,240 Pizza Hut restaurants.
The acquired restaurants are primarily located in Maryland, Virginia and the District of Columbia. According to information provided to NPC, the acquired units generated approximately $215 million in net product sales during the 52 weeks ended February 2017, or roughly $1.5 million in average restaurant sales.
Jim Schwartz, chairman and CEO of NPC, said: “We plan to make significant investments in the market through Image Activation [restaurant site renovations] and the implementation of a new Aloha point of sale system at every location. This acquisition will be our seventh acquisition in the Wendy’s system since 2013 and will increase our holdings to 386 restaurants with revenues exceeding $590 million, or approximately 40 percent of our total consolidated revenues, positioning NPC as the largest Wendy’s franchisee.”
Todd Penegor, president & CEO of The Wendy’s Company, said: “As we continue to transform the system by facilitating restaurant sales to franchisees who have demonstrated operations excellence, brand and organizational leadership, and reinvestment in the business, we’re excited about NPC’s commitment to help Wendy’s reach its full potential in these important growth markets.”
Source: Franchise News