News

Whataburger under new ownership, leadership

June 17, 2019

Whatburger has a new owner.

The chain announced Friday that BDT Capital Partner LLC, a merchant bank that advises and invests in family and founder-led companies, will acquire the San Antonio-based brand through its affiliated funds, according to a company press release.

"Whataburger has grown significantly over the years," Whataburger President and CEO Preston Atkinson said in the release. "In order to keep satisfying our customers, we've been exploring different options to expand the brand and introduce it to new audiences. We've gone through this process purposefully and diligently because we wanted to find a partner who honors our values, culture and 69-year legacy of family tradition."

Atkinson said BDT makes a good partner because it wants to preserve the brand while helping it grow.

"They don't plan to change our recipe for success," he said.

BDT will be key in providing strategic vision and long-term growth capital to the tenured Whataburger leadership team.

"We are excited to support Whataburger as they continue to innovate and pursue accelerated growth in existing and new markets," Tiffany Hagge, managing director of BDT Capital Partners, said in the release. "This investment is a perfect example of BDT's business model — to partner and invest alongside exceptional family businesses, with strong cultures, deep community ties and loyal customers."

Tenured Whataburger core leadership team at the helm

The company has also shaken up the leadership team in order to "position the brand for long-term growth and success." According to the press release, Atkinson and Chairman Tom Dobson are stepping down in order to "focus on operating Las Aguilas," a diversified investment company established by the Dobson family in 2011. Las Aguilas's focus is on real estate and philanthropy.

"This is both exciting and bittersweet for the Dobson family. Whataburger has been the heart and soul of our family legacy for nearly 70 years, but we feel really good about the partnership with BDT," Dobson said. "They have a track record of success with businesses as special as ours that want to grow, while preserving culture and family history. They are trusted advisors and partners who have worked closely with other family businesses and they have a tremendous reputation for doing the right thing."

Atkinson and Dobson will hold seats on the Whataburger board of directors to provide ongoing guidance and ensure a smooth transition.

"As the brand embarks on a growth and expansion plan, we decided the time was right to promote new leadership to carry the company forward," Atkinson said. "This leadership team has the right combination of Whataburger core values, strategic vision and people-centered leadership to take us into the future."

Effective July 1, Whataburger's executive leadership team will include the following changes:

• Ed Nelson, who is now serving as chief financial officer and controller, will be president. Nelson joined Whataburger in 2004, as controller for the company, and since 2008, has been at the helm of its financial department as chief financial officer.
• Leonard Mazzocco, who is serving as vice president of business operations, will take on the role of senior vice president and chief operating officer. He joined Whataburger in 1999, as the operations services director and has since guided efforts in brand management, marketing, human resources, supply chain, shared services and product development. He was promoted to his current role in 2014, where he has led strategic planning.
• Rob Rodriguez, who is now senior vice president of restaurants, will assume the role of senior vice president and chief restaurant operating officer. Rodriguez joined Whataburger in 2006, as a director of operations and was named a senior vice president in 2014.
• James Turcotte, who is senior vice president of the real estate segment, will continue in his role and be promoted to chief development officer. Turcotte began his Whataburger career in 1998, as a director in the real estate division. He then took on the role of group director followed by vice president of franchise development. In 2004, Turcotte was named vice president of property and facilities to oversee new construction, enhancement and property management functions. 
• Mike Sobel, vice president of retail, will be senior vice president of retail. He joined Whataburger in 2011, as the company's group director for supply chain solutions, before assuming his current role in 2014. Sobel brings almost 35 years of experience in supply chain, quality assurance and product development experience in the restaurant industry
• Michael Gibbs, senior vice president and general counsel, will continue his role as general counsel but will be promoted to executive vice president. Gibbs joined Whataburger in 2005, as the company's first in-house general counsel. Prior to joining Whataburger, he practiced corporate law and served as vice president and general counsel for a Detroit-based restaurant chain.

Other members of Whataburger's leadership team include:

• Mark Brown, divisional VP of restaurant operations.
• Pam Cox, VP of human resources and brand communications.
• Joel Griffiths, group VP of restaurant operations.
• Sylvester Johnson, chief accounting officer.
• Jeff North, divisional VP of restaurant segment support.
• Bobby Pemelton, divisional VP of restaurant operations.
• Rich Scheffler, VP of marketing and innovation.
• Joe Shannon, VP and CIO.
• Rory Sheppard, VP of strategy and services.

Whataburger has 828 locations in 10 states with sales of more than $2 billion annually.