Deal makes NPC the quick-service chain’s largest franchisee.
NPC International Inc. has acquired 140 Wendy’s restaurants once owned by one of the chain’s largest franchisees, DavCo Restaurants, in a seismic shift in unit ownership at the Dublin, Ohio-based burger franchise.
The deal is the second Wendy’s acquisition for NPC, more than doubling the company’s Wendy’s holdings and making the Overland Park, Kansas-based operator the chain’s largest franchisee. It now operates 386 Wendy’s restaurants. NPC is also the country’s largest Pizza Hut franchisee.
“We look forward to capitalizing upon the terrific opportunity in this market by delivering upon the Wendy’s brand promise each and every day,” NPC CEO Jim Schwartz said in a statement.
The sale comes more than two years after Wendy’s sued DavCo over its refusal to remodel restaurants. DavCo is no longer a franchisee of the quick-service chain, according to a Wendy’s spokeswoman.
Wendy’s acquired the locations from DavCo and then sold them to NPC. As part of the deal, the franchisee agreed to remodel 90 of the locations by the end of 2021. The franchisee also agreed to build 15 new restaurants by the end of 2022.
NPC’s acquisition is its second major purchase of Wendy’s units this year. In March, the company acquired 62 locations from Valenti Mid-Atlantic Management LLC for $52.6 million. NPC’s two acquisitions this year total 202 Wendy’s locations.
NPC is one of largest franchisees in the U.S., and one of the largest restaurant operators of any kind. It operated 1,410 restaurants at the end of 2016, including 184 Wendy’s units and 1,226 Pizza Hut locations.
“We have an outstanding group of international franchise partners who play an essential role in the growth and success of our brand, and we are dedicated to helping them build strong, profitable restaurant businesses,” says Bob Wright, EVP, Chief Operations Officer & International of The Wendy’s Company. “At Wendy’s, our goal is to Delight Every Customer in every restaurant around the world. It’s this shared commitment that has resulted in the successful growth of our international business.”
Source – Nation’s Restaurant News
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