Five Guys Burgers and Fries, the rapidly expanding fast-casual burger brand, primed the pump for further growth by increasing the size of its credit facility with GE Capital, Franchise Finance recently.
The burger specialist closed on a $100 million facility, made up of a $45 million revolving line of credit and a $55 million term loan. Funding was provided through GE Capital Financial Inc., the bank affiliate of GE Capital, Franchise Finance.
Founded in 1986 in Arlington, Va., Five Guys today has more than 100 company-owned and 640 franchised locations in the United States and Canada, and features a streamlined menu of hamburgers, hot dogs and French fries.
“GE Capital’s ability to grow with us, from a $14 million credit facility in 2008 to a $100 million credit facility in $100 million in 2011, has been a critical part of our success,” said Peter Hanson, chief financial officer of Five Guys Holdings Inc. “In completing the refinancing of our existing credit facility and providing us with $55 million in new capital, GE has put us in a great position to deliver on our ongoing development plans.”
Five Guys has opened more than 375 restaurants over the past three years.
Sometimes compared to In-N-Out Burger on the West Coast, Five Guys is a leader in the “better burger” segment, which also includes Smashburger, Good Burger and The Habit Burger Grill.
The brand, which began franchising in 2002 and entered Nation’s Restaurant News’ Top 100 in 2010, grew its systemwide sales by almost 69 percent in 2009 to $499 million, according to NRN research.
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Contact Paul Frumkin at [email protected].