Pollo Tropical Restaurant Chain to Be Sold
Authentic Restaurant Brands to buy Fiesta Restaurant Group for $225 million Miami-based Pollo Tropical is known for serving heaping portions of Latin American-inspired cuisine. Photo: Jeffrey Greenberg/Universal Images Group/Getty Images By Lauren Thomas Aug. 6, 2023 7:00 pm ET The Pollo Tropical restaurant chain is nearing a deal to be bought by an investment firm for $225 million. Authentic Restaurant Brands, part of New York-based Garnett Station Partners, plans to add the fast-casual restaurant operator to a portfolio that already includes sandwich chain Primanti Bros., according to people familiar with the matter. The deal for Pollo Tropical parent Fiesta Restaurant Group is worth $8.50 per share, representing a modest premium to the company’s closing shar
Miami-based Pollo Tropical is known for serving heaping portions of Latin American-inspired cuisine.
Photo: Jeffrey Greenberg/Universal Images Group/Getty Images
The Pollo Tropical restaurant chain is nearing a deal to be bought by an investment firm for $225 million.
Authentic Restaurant Brands, part of New York-based Garnett Station Partners, plans to add the fast-casual restaurant operator to a portfolio that already includes sandwich chain Primanti Bros., according to people familiar with the matter.
The deal for Pollo Tropical parent Fiesta Restaurant Group is worth $8.50 per share, representing a modest premium to the company’s closing share price Friday of $7.86. The deal is expected to be made official by Monday, barring any last-minute snags.
Fiesta shares have risen about 7% so far this year, trailing the S&P 500.
Fiesta’s total revenue increased 8.4% in 2022 to $387.4 million. The company swung to a loss of $14.6 million, compared with net income of $10.4 million in 2021, primarily due to higher commodity and labor expenses.
The Dallas company owned and operated 137 Pollo Tropical restaurants, plus 30 that are franchised, across the U.S., Puerto Rico, Panama, Guyana and the Bahamas as of April 2, according to securities filings. Miami-based Pollo Tropical is known for serving heaping portions of Latin American-inspired cuisine, including marinated and grilled chicken, rice and black beans.
Fiesta used to have a larger portfolio before it sold the Taco Cabana chain to YTC Enterprises, an affiliate of a Jack in the Box, El Pollo Loco and Denny’s franchisee, for $85 million in 2021 in a bid to pay down debt.
Authentic Restaurant Brands is a holding company that also owns sports-bar chain P.J. Whelihan’s and Mambo Seafood. The company is led by Chief Executive Felipe Athayde and Chairman Alex Macedo, both of whom previously held leadership roles at Burger King parent Restaurant Brands International.
Garnett Station was founded in 2013 by Matt Perelman, formerly of private-equity firm L Catterton, and Alex Sloane, formerly of Apollo Global Management.
The firm manages over $2 billion of assets, with a focus on the consumer and business-services, health-and-wellness, automotive and food-and-beverage industries.Some of Garnett Station’s other current investments include the popular shaved-ice truck business Kona Ice, auto repair and tire provider Apex Automotive and several carwash businesses, according to its website.
Despite a general slowdown in deal-making so far this year—with a volatile stock market and higher interest rates chilling activity—there has still been a flurry of transactions in the restaurant sector. Olive Garden owner Darden Restaurants bought Ruth’s Chris Steak House for $715 million. Meanwhile, sandwich chain Subway has been working with advisers toward a sale that could be completed in the coming weeks.
Write to Lauren Thomas at [email protected]
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