Financing

Fat Brands completes $130M purchase of Fazoli’s

The acquisition of the fast casual brings the brand collector to about 2,300 global restaurant locations and an expected $2.2 billion in systemwide sales for 2022.
Fazoli's
Photograph: Shutterstock

Fat Brands’ $130 million acquisition of Fazoli’s is complete, the company announced Thursday.

The deal, first announced early last month, puts the 216-unit Italian fast-casual chain in the hands of the brand collector that now owns Fatburger, Johnny Rockets, Twin Peaks and Round Table Pizza parent Global Franchise Group.

The purchase increases Fat Brands’ holdings to about 2,300 franchised and corporate stores around the world.

For the past six years, Fazoli’s has been owned by private-equity firm Sentinel Capital Partners.

The acquisition brings to more than $2.2 billion Fat Brands’ anticipated 2022 systemwide sales, the company said.

“This has been a year of tremendous growth for Fat Brands,” CEO Andy Wiederhorn said in a statement. “While we have focused on expanding our footprint and scale via strategic acquisitions, we also continue to show strong same-store sales systemwide. Fazoli’s has had an outstanding year when it comes to brand performance with three quarters of record-setting sales.”

Fazoli’s will retain its Lexington, Ky., headquarters, with CEO Carl Howard and the rest of the executive remaining in place.

In an interview last month, Howard said his chain will find “synergies and collaborations” with Fat Brands as it pertains to supply chain and development.

Fazoli’s reported two-year same-store sales growth of 28.1%, attributed in large part to the popularity of value offers launched during the pandemic.

“Fazoli’s has had a historic year,” Howard said in a statement. “Now a part of Fat Brands, we will look to tap into their scale and global presence to bring our delectable Italian cuisine to new markets internationally to one day take the title of largest premium QSR Italian chain worldwide.”

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