KBP Foods, the large Overland Park, Kan.-based Yum! Brands Inc. franchisee, on Monday said it has acquired 78 additional KFC locations in Texas, Illinois and Kansas.
KBP bought the locations in three separate deals, giving the operator 530 locations in 20 states. The company says the locations have revenues of close to $600 million.
It’s the latest, major deal since KBP management led a buyout of the company’s private equity owners, including a 91-unit acquisition last year. KBP has used a series of acquisitions to grow into one of the country’s biggest restaurant operators.
The company said it has increased its store count by 166 locations this year through a combination of new construction and $185 million in acquisitions.
The latest purchase includes 33 restaurants in Chicago and four locations in Lawrence and Topeka, Kan., as well as 41 locations in Houston and Austin, Texas. The stores in Kansas and Chicago were acquired from other franchisees while the stores in Texas were acquired from KFC.
“We have achieved meaningful growth by adding density in key markets such as Chicago and Texas,” CEO Mike Kulp said in a statement. He said acquisitions increase business value and provides advancement opportunities for employees.
The company refinanced its debt earlier this year with AB Private Credit Investors. KBP said the debt could allow it to double in size over the coming years.
Franchisees have been using readily available credit to buy up smaller operators and grow larger, particularly in older restaurant chains such as KFC, Taco Bell, Burger King and The Wendy’s Co.
Contact Jonathan Maze at [email protected]
Follow him on Twitter at @jonathanmaze