Jollibee Foods Corporation becomes majority owner of Smashburger in $100M deal
Smashburger, based in Denver, announced today that Jollibee Foods Corporation has acquired an additional 45 percent of the brand for $100 million USD, bringing JFC's ownership stake to 85 percent.
"Jollibee has been an invaluable strategic partner to date," Tom Ryan, co-founder and CEO of Smashburger, said in a company press release. "Our momentum in 2017 around improved guest experience, iconic and record-setting product launches, and innovative marketing provide JFC a tremendously strong brand to enter the North American market. Our entire team couldn't be more excited to grow the Smashburger brand and share the great tastes of Smashburger with the world."
In 2017, Smashburger launched and sold nearly two million Triple Double Burgers setting record levels of mix, sales and traffic. The company also launched the Smash Pass, a subscription model consumer frequency program, a fast casual first, according to the press release.
JFC's majority stake in Smashburger positions the brand for continued growth, said Bradford Reynolds, CFO of Smashburger.
"This reinforced strategic partnership with JFC will allow Smashburger to continue to focus on growth in both existing and new markets including the opportunity to bring our great tasting burgers, fries and hand-spun shakes to Southeast Asia,” he said. “We look forward to building upon our successful relationship to further bolster the brand as an international leader in the better burger segment."
Smashburger began in 2007, with the vision of Rick Schaden and funding by Consumer Capital Partners — the private equity firm that Rick and his father, Richard own. There are now more than 360 corporate and franchise restaurants operating in 38 states and nine countries.
JFC operates the largest food service network in the Philippines, operating 2,875 restaurant outlets in the country. The JFC Group's worldwide store network reached 3,799 stores.
Topics: Franchising & Growth