Roark Capital Group has acquired Wingstop Restaurants Inc., a Richardson, Texas-based chain of more than 650 chicken wing restaurants in operation or in development. No financial terms were disclosed.
In its fifth deal in the last six months, Roark Capital Group, an Atlanta-based private equity firm specializing in franchising, announced today that its affiliate has acquired Wingstop Restaurants, Inc., the chicken wing chain that was recently recognized by Technomic as one of the 10 fastest growing concepts in the United States.
Having sold over 2 billion wings since being founded in 1994, Wingstop generated more than $300 million in system-wide revenues in 2009. The Richardson, Texas based chain currently has more than 650 restaurants open or in development in 34 states and Mexico and plans to open more than 60 restaurants in 2010.
“Roark invests in franchises with a proven track record in the marketplace and potential for significant growth,” said Steve Romaniello, Managing Director at Roark. “With 27 consecutive quarters of positive same-store sales, Wingstop is a clear leader in its category.”
James Flynn, Wingstop’s CEO, and the senior management team, will all remain in their current roles. Flynn joined Wingstop in 2003, and has spearheaded the chain’s expansion from 90 restaurants to the more than 650 that are open or in development today.
“We believe the partnership between Wingstop and Roark is a perfect fit,” Flynn said. “Our ability to leverage Roark’s strong background and deep resources within the restaurant and franchise industry will allow us to more aggressively grow the Wingstop brand and also provide new opportunities for our existing franchisees.”
Erik Morris, Managing Director at Roark, added, “Wingstop is a highly differentiated category leader with strong unit-level economics and broad consumer appeal. We are excited to be partnering with Jim and his team and look forward to supporting the company’s growth initiatives.”
With this latest transaction, Roark has now acquired 17 franchise/multi-unit brands that collectively have over 45,000 points of distribution, 3,000 franchisees, and more than
$4 billion in system-wide revenues across 50 states and 36 countries. Its current franchise portfolio includes such well-known brands as Carvel, Cinnabon, Schlotzsky’s, Moe’s Southwest Grill, McAlister’s Deli, Money Mailer, Fast Signs, Batteries Plus, Primrose Schools and Pet Valu.
Roark has seen significant activity during the past six months, including the acquisition of franchisor Pet Valu, Canada’s leading small-format specialty retailer and wholesale distributor of pet food and supplies. Roark also recently invested $100 million in Waste Pro USA, a non-hazardous solid waste management services company, as well as investing additional funds in its portfolio company PSC to support its acquisition of North Shore Agency. Earlier this year, Roark acquired a majority ownership position in Peachtree Business Products, a Marietta, Georgia-based multi-channel marketer of specialty business products and marketing materials for residential property managers, parking facilities and other end markets.
About Roark Capital Group
Roark Capital Group is an Atlanta-based private equity firm that specializes in business and consumer service companies with attractive growth prospects and revenues ranging from $20 million to $1.0 billion. Roark focuses on middle-market investment opportunities through family-owned business transfers, management/corporate buyouts, recapitalizations, going-private transactions, and corporate divestitures. Specific areas of focus include franchise, food and restaurants, marketing services, environmental services and business services. Roark has acquired 17 franchise/multi-unit brands that collectively have over 45,000 points of distribution, 3,000 franchisees, and more than $4 billion in system-wide revenues across 50 states and 36 countries. The firm has more than $1.5 billion of equity capital under management. For more information, please visit www.roarkcapital.com.
Founded in 1994 and headquartered in Richardson, Texas, Wingstop has more than 440 restaurants operating across the United States and Mexico. With a sole focus on chicken wings, Wingstop has experienced more than six consecutive years of positive sales increases, received multiple American Business Awards and was crowned Wing King at the National Buffalo Wing Festival. Wingstop was also honored with the 2009 Consumers’ Choice in Chains Award and was recently named as one of Technomic, Inc.’s 10 fastest growing chains. For more information on Wingstop, visit www.wingstop.com. For franchise and franchise event information, visit www.wingstopfranchise.com.