Applebee’s Parent To Buy Fuzzy’s Taco Shop

Dine Brands, the parent company to full-service brands Applebee’s Neighborhood Grill and Bar and IHOP, is acquiring the fast-casual concept Fuzzy’s Taco Shop from NRD Capital Management for $80 million.

Founded in 2003 in Fort Worth, Texas, Fuzzy’s Taco Shop has 138 restaurants, nearly 98% of which are franchised, in 18 states, with long-term development agreements in place to nearly double its current restaurant base, according to Dine Brands. Fuzzy’s Taco Shop is expected to generate approximately $230 million in systemwide sales this year.

“Fuzzy’s Taco Shop is a compelling business with a loyal customer base and a distinct identity. It is an attractive asset with a tremendous growth trajectory and will be a complementary addition to our highly franchised portfolio,” says John Peyton, CEO of Dine Brands, in a press release. “By adding Fuzzy’s to the Dine Brands family, we are investing in a high-growth concept as part of our longer-term growth agenda, which is aligned with our strategy to build shareholder value.”

The Mexican brand is led by CEO Paul Damico, a 35-year industry veteran, who will continue in the role under the Dine Brands umbrella.

Centerview Partners served as exclusive financial advisor to Dine Brands, with Sidley Austin LLP serving as legal advisor. Arlington Capital Advisors served as exclusive financial advisor to Fuzzy’s Taco Shop, with Cheng Cohen LLC serving as legal advisor to Fuzzy’s Taco Shop and NRD Capital.

Dine Brands’ portfolio includes over 3,400 restaurants in 16 countries and 338 franchisees.