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Wingstop acquired by Roark Capital Group
April 11, 2010
Atlanta-based private equity firm Roark Capital Group has announced that its affiliate has acquired Wingstop Restaurants Inc., in a deal that took about four months to complete.
Wingstop generated more than $300 million in systemwide revenues in 2009 and has more than 650 restaurants open or in development throughout the U.S. and Mexico. The Richardson, Texas-based chain also has plans to open more than 60 locations in 2010.
"Roark invests in franchises with a proven track record in the marketplace and potential for significant growth," said Steve Romaniello, managing director at Roark. "With 27 consecutive quarters of positive same-store sales, Wingstop is a clear leader in its category."
Wingstop's CEO James Flynn and other members of the senior management team will all remain in their current roles. Flynn joined Wingstop in 2003 and has spearheaded the chain's expansion from 90 restaurants to the more than 650 that are open or in development today.
"We believe the partnership between Wingstop and Roark is a perfect fit," Flynn said. "Our ability to leverage Roark's strong background and deep resources within the restaurant and franchise industry will allow us to more aggressively grow the Wingstop brand and also provide new opportunities for our existing franchisees.
"The Roark team is experienced in the restaurant industry and will provide good input and act as a sounding board for the Wingstop brand. They also have great relationships with suppliers and distributors that we can leverage for our brand and franchise system."
With this latest transaction, Roark has now acquired 17 franchise/multiunit brands that collectively have more than 45,000 points of distribution, 3,000 franchisees and more than $4 billion in system-wide revenues across 50 states and 36 countries.
Its current franchise portfolio includes Carvel, Cinnabon, Schlotzsky's, Moe's Southwest Grill, McAlister's Deli, Money Mailer, Fast Signs, Batteries Plus, Primrose Schools and Pet Valu.
Earlier this year, Roark acquired a majority ownership position in Peachtree Business Products, a Marietta, Ga.-based multi-channel marketer of specialty business products and marketing materials for residential property managers, parking facilities and other end markets.
The firm also has more than $1.5 billion of equity capital under management.
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