High Bluff Capital Partners, parent company of Church’s Texas Chicken, as well as Quiznos and Taco Del Mar, is adding 81 Hardee’s restaurants to its assets.
In a court-approved auction process for the assets of Summit Restaurant Group and related entities, a former Hardee’s franchisee that filed for Chapter 11 in May, High Bluff Capital Partners was the winning bidder. The transaction is expected to close in August.
With locations in Alabama, Florida, Georgia, Kansas, Missouri, Montana, South Carolina, and Wyoming, the portfolio is consistent with High Bluff’s strategy of investing in iconic consumer-facing brands, with a strong presence in historically underserved markets, that have the opportunity for significant growth and value creation, the company stated in a press release.
“Hardee’s is a regionally strong brand, known for its quality, hand-crafted menu,” said High Bluff Capital Partners founder Anand Gowda, who has been investing in consumer brands for more than two decades. “These restaurants in many cases have served as central neighborhood hubs, where people and families come to gather and connect,” he added. “It’s in areas like these where we see the greatest opportunity to create value by truly having a positive impact on local communities and the people who call them home. Guests aren’t just craving delicious food, they’re craving togetherness and we are thrilled to partner with the Hardee’s team to deliver that.”
CKE Restaurants Holdings, the parent company of Hardee’s, said the company welcomes its relationship with High Bluff Capital.
“Throughout this process, we have maintained that the restaurants would be sold to a qualified and well-capitalized buyer with demonstrable success across the restaurant, food and beverage markets,” said Max Wetzel, CKE chief executive officer “With an impressive track record of growing numerous consumer brands, High Bluff is the ideal partner to support our efforts to deliver outstanding service and the foods our core customers crave, while making critical investments in restaurant remodels and other initiatives designed to boost traffic and sales.”
“We are excited about the additional scale and diversity the Hardee’s opportunity brings to our platform,” said Coady Smith, a principal at High Bluff Capital Partners. “Over the next few years, we plan to continue to aggressively pursue new acquisitions, with a goal of growing our platform to six to ten restaurant concepts with $75 to $100 million of EBITDA.”
Dave Dixon will oversee the operations of the acquired Hardee’s locations. Over the course of his career, he has worked with restaurants brands including KFC, Burger King, Culver’s, Popeyes, Church’s Chicken, Slim Chickens and Hardee’s.
High Bluff Capital acquired Quiznos and Taco Del Mar in 2018, and Church’s Texas Chicken in 2021.
