New York-based private-equity firm Sentinel Capital Holdings said Tuesday it has acquired Huddle House Inc., the franchisor to the 393-unit family-dining chain located primarily in the Southeast.
Atlanta-based Huddle House reported more than $225 million in annual systemwide sales from 376 franchised restaurants and 17 company-owned units. Its same-store sales swung to positive territory last year, recording a same-store sales gain of 7.9 percent in the fourth quarter of 2011, and 7.2 percent in the first quarter of this year, the company said.
Terms of the acquisition were not disclosed.
The Huddle House purchase adds to Sentinel’s roster of franchised brands, which also includes Border Foods, a large Taco Bell franchisee; Falcon Holdings, the largest franchisee of Church’s Chicken; and Southern California Pizza Company, a 223-unit franchisee of Pizza Hut.
“We are excited to partner with the talented Huddle House management team and a strong group of franchisees,” Jim Coady, a partner with Sentinel, said in a statement. “We have particular expertise in franchising and restaurants, and we look forward to leveraging that experience to continue Huddle House’s success.”
Huddle House chief executive Ken Keymer said Sentinel “has a proven track record of helping franchise businesses build value.”
“We have made meaningful progress with the Huddle House brand in recent years that has resulted in above-average growth for our system,” he said. “With Sentinel as our partner, we look forward to accelerating this growth.”
Huddle House operates in 20 states.
Contact Mark Brandau at [email protected].
Follow him on Twitter: @Mark_from_NRN