Apple Hee’s franchise bid to buy Pizza Hut’s largest US operator


A customer enters a Pizza Hut restaurant in Princeton, Illinois.

Daniel Acker | Bloomberg Getty Images

The Flynn Restaurant Group has bid horses for $ 816 million for the assets of NPC International, the operator of hundreds of Pizza Hut and Wendy’s restaurants.

The NPC, which also operates Wendy’s locations, said on Friday that it has agreed to accept the bid and will seek approval from the bankruptcy court. The deal would give Flynn the largest restaurant franchise in the United States, which would control the assets of NPC’s 1,300 Pizza Hut and Wendy’s restaurants and its shared services. This would more than double Flynn’s total restaurant footprint.

Flynn, which is privately held, has approximately $ 2.3 billion in annual sales and operates approximately 1,200 Applebee, Panera Bread, Arby’s and Taco Bell restaurants. The operator has agreed to offer employment to all 30,000 NPC workers. Pizza Hut and Taco Bell are both owned by Yum Brands.

NPC filed for Chapter 11 bankruptcy in July. Under an agreement with Pizza Hut, about 300 of its under-performing locations will be permanently closed, but the rest of its assets were put up for sale.

On Monday, Wendy said in a regulatory filing that it was considering bidding on about 400 locations of the NPC-operated burger chain. The bid will include pre-qualified new and existing franchises.

Due to the number of locations for sale, auction results could have a huge impact on Pizza Hut and Wendy’s American businesses. Pizza Hut is in the midst of a turnaround and has previously said it is seeking a new owner with a “healthy balance sheet” and a “strong capital structure”.

The two chains have been linked with NPCs based on the terms of the sale, arguing for more monitoring in selecting the next operator or operators of the locations.

A hearing on November 13 will determine whether or not Flynn’s horses bid is approved, and a sales hearing will be held on December 4.

.

Leave a Reply

Your email address will not be published.