Torchy’s Tacos on Friday said it has completed a new fundraise, bringing in several new investment firms to its ownership group to fuel a rapid expansion that could more than double its unit count by 2024.
The Austin, Tex.-based company said it has received investments from D1 Capital Partneers, T. Rowe Price, Lone Pine Capital and XN. In addition, company founder Michael Rypka and members of the chain’s original ownership group have reinvested in the company.
The private equity firm General Atlantic remains its majority shareholder. “We feel that we have assembled a premier ownership group that will allow us to accelerate our growth and write the next chapter in Torchy’s history,” CEO G.J. Hart said in a statement.
Terms of the deal were not disclosed. But Torchy’s has been growing quickly since Rypka founded the concept in a food trailer in Austin in 2006—it dubs itself a “craft casual” brand that serves alcohol alongside its handcrafted tacos. The company currently has 83 locations in seven states and boasts average unit volumes of $3.8 million.
The company wants to grow more quickly. The company has added 20 locations this year and said the investment from the investment groups will help fuel plans to bring its tacos to 10 more states by 2024, which could more than double its current footprint.
“We admire the management team’s deep operational experience and commitment to providing an original and differentiating experience,” Andrew Crawford, chairman of Torchy’s and global head of consumer at General Atlantic, said in a statement. “We believe their vision will continue to resonate across a wide-ranging demographic of guests, geographies and footprints as Torchy’s expands across the United States.”
Torchy’s has locations in Texas, Oklahoma, Colorado, Arkansas, Louisiana, Missouri and Kansas. North Point Advisors and BofA Securities acted as placement agents for the transaction.