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A large restaurant franchisee is getting ready to fill hundreds of Pizza Hut and Wendy locations he wants to buy from his bankrupt owner.
NPC International has agreed to sell all of its approximately 925 Pizza Hut restaurants and approximately 225 of its 383 Wendy’s restaurants to Flynn Restaurant Group. The rest of the Wendy businesses will be sold to Wendy’s International in a few deals worth a total of $ 801 million, NPC announced Thursday.
Flynn is the largest restaurant franchisee in the US and operates 460 Applebee’s, 282 Taco Bell, 134 Panera Bread and 369 Arby’s.
NPC International has agreed to sell all of its approximately 925 Pizza Hut restaurants and approximately 225 of its 383 Wendy’s restaurants to Flynn Restaurant Group. (Patrick T. Fallon / Bloomberg via Getty Images)
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In the deal, which is still being approved by the judge, Flynn will operate more than 2,350 restaurants with 70,000 employees and $ 3.5 billion in sales, while NPC can complete its Chapter 11 restructuring.
“Flynn Restaurant Group has expanded our business over the past twenty years by focusing on managing superior operations with large teams of people on the best restaurant concepts,” said Greg Flynn, founder, chairman and CEO of the company, in a written statement said. “The Pizza Hut and Wendy’s restaurants we acquired from NPC fit in perfectly with this strategy, and we are confident that our new team members will fit in with Flynn Restaurant Group.”
The buyers offer jobs to all the employees of the restaurants. Wendy’s International will make the locations it acquires available to five of its current franchisees.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| WIN | THE WENDY’S COMPANY | 21.68 | +0.56 | + 2.68% |
Carl Hauch, president and CEO of NPC’s division Wendy, calls the deals an excellent outcome. ‘
“We are very pleased that our restaurants will be joining the ranks of established, conservative restaurant franchise groups,” he said in a written statement.
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NPC, the largest franchisee of both Pizza Hut and Wendy, and overall second largest restaurant franchisee in the U.S., applied for bankruptcy protection last summer after failing to pay $ 800 million in interest payments on loans in January, even before the coronavirus pandemic hit the restaurant industry disrupted. .
Wendy’s will make the locations it acquires available to five of its current franchisees. (iStock)
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The bankrupt franchisee said in November that he was in talks with Flynn to sell all of his restaurants for as much as $ 816 million.
A federal bankruptcy judge will consider the proposed transactions during a January 15 trial. Pending the judge’s approval, the companies plan to close the deal by the second quarter of the year.