Freddy’s Frozen Custard & Steakburgers is reportedly set to change hands.
According to a Reuters report Friday, private-equity firm Rhone Group has a deal to acquire the fast-casual burger chain for $700 million, including debt.
Freddy’s is currently owned by Thompson Street Capital Partners, which bought the brand from its founders in 2021 for an undisclosed amount.
Freddy’s declined to comment on the report Friday afternoon.
Reuters reported in November that Thompson was considering a sale of Freddy’s at a valuation of $1 billion. The news came amid a string of other splashy deals for franchised restaurant chains, including Blackstone's acquisition of Jersey Mike’s and Tropical Smoothie for $8 billion and $2 billion, respectively.
Thompson has apparently found a buyer in Rhone, albeit for lower than its initial asking price.
New York City-based Rhone invests in a variety of industries, including consumer brands. It has a stake in Illycafe, the Italian coffee company. It also owned Brazilian steakhouse chain Fogo de Chao for about five years before selling it to Bain Capital in 2023.
Rhone declined to comment.
Wichita, Kansas-based Freddy’s was founded in 2002 by Bill and Randy Simon with friend Scott Redler. It has been one of the better performing fast-casual brands and burger brands in the U.S. in recent years.
From 2019 to 2024, Freddy’s system sales increased an average of 13% per year, according to Technomic data. Sales grew 6% last year, to more than $987 million. It finished 2024 with a total of 550 locations.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.