Freddy’s reportedly hit the market late final 12 months. | Picture: Shutterstock
Freddy’s Frozen Custard & Steakburgers is reportedly set to vary arms.
In line with a Reuters report Friday, private-equity agency Rhone Group has a deal to accumulate the fast-casual burger chain for $700 million, together with debt.
Freddy’s is at the moment owned by Thompson Road Capital Companions, which purchased the model from its founders in 2021 for an undisclosed quantity.
Freddy’s declined to touch upon the report Friday afternoon.
Reuters reported in November that Thompson was contemplating a sale of Freddy’s at a valuation of $1 billion. The information got here amid a string of different splashy offers for franchised restaurant chains, together with Blackstone’s acquisition of Jersey Mike’s and Tropical Smoothie for $8 billion and $2 billion, respectively.
Thompson has apparently discovered a purchaser in Rhone, albeit for decrease than its preliminary asking value.
New York Metropolis-based Rhone invests in a wide range of industries, together with client manufacturers. It has a stake in Illycafe, the Italian espresso firm. It additionally owned Brazilian steakhouse chain Fogo de Chao for about 5 years earlier than promoting it to Bain Capital in 2023.
Rhone declined to remark.
Wichita, Kansas-based Freddy’s was based in 2002 by Invoice and Randy Simon with buddy Scott Redler. It has been one of many higher performing fast-casual manufacturers and burger manufacturers within the U.S. in recent times.
From 2019 to 2024, Freddy’s system gross sales elevated a median of 13% per 12 months, in line with Technomic information. Gross sales grew 6% final 12 months, to greater than $987 million. It completed 2024 with a complete of 550 areas.
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