Fuzzy's Taco Shop
Artist's rendering, Fuzzy's Taqueria
Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill + Bar and IHOP restaurants, on Monday announced that it has agreed to acquire Fuzzy’s Taco Shop from Experiential Brands LLC, a wholly-owned subsidiary of NRD Holding Company.
The purchase price was $80 million in cash, according to both companies.
Fuzzy’s Taco Shop was founded in 2003 in Fort Worth. Its first store, which is still in operation, was on Berry Street near the campus of TCU. It entered the marketplace as an innovator, offering a new twist on Mexican favorites at a value price point.
Fuzzy’s is led by CEO Paul Damico, a 35-year industry veteran at FOCUS Brands, Moe’s Southwest Grill, and Global Franchise Group. Damico will continue in his role, according to a press release.
“Fuzzy’s Taco Shop is a compelling business with a loyal customer base and a distinct identity. It is an attractive asset with a tremendous growth trajectory and will be a complementary addition to our highly franchised portfolio,” said John Peyton, Dine Brands CEO. “By adding Fuzzy’s to the Dine Brands family, we are investing in a high growth concept as part of our longer-term growth agenda, which is aligned with our strategy to build shareholder value.”
Fuzzy’s operates 138 restaurants in 18 states, with long-term development agreements in place to nearly double its current restaurant base over time. About 98% of Fuzzy’s current system is franchised and its strong unit economics attract franchisees to open more restaurants. The brand is expected to generate approximately $230 million in systemwide sales in 2022.
“I’m incredibly proud of the work the Fuzzy’s team and franchisees have accomplished over the past few years, which has enabled us to enter this new chapter of growth together with Dine Brands,” said Damico. “With Dine Brands’ substantial industry resources, we will be well positioned to build upon our proven successes and accelerate our growth.”
Dine Brands is based in Glendale, California. Through the end of last year, the company had more than 3,400 restaurants combined in 16 countries and 338 franchisees as of December 31, 2021, Dine Brands is one of the largest full-service restaurant companies in the world. For more information on Dine Brands, visit the Company’s website located at www.dinebrands.com.
Centerview Partners LLC acted as exclusive financial advisor and Sidley Austin LLP acted as legal advisor to Dine Brands on the transaction. Arlington Capital Advisors, a firm based in Alabama, served as exclusive financial advisor to Fuzzy’s Taco Shop, and Cheng Cohen LLC served as legal advisor to Fuzzy’s Taco Shop and NRD Holding Company on the transaction.
“This transaction is a textbook example of how NRD identifies and grows brands, which can result in successful outcomes for all stakeholders, including company management, company employees, franchisees and investors of NRD Capital,” said Aziz Hashim, NRD’s managing partner. “NRD is incredibly proud of the work it has done alongside the talented Fuzzy’s Taco Shop team to drive growth and propel value creation.”