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Major restaurant franchisee buys Taco Cabana for $ 85 million


The owner of Taco Cabana is selling the Tex-Mex chain for $ 85 million to a company that is the largest franchisee of restaurants Jack in the Box and TGI Friday.

Fiesta Restaurant Group Inc. announced Thursday that it has entered into a share purchase agreement with a subsidiary of Yadav Enterprises Inc., which operates nearly 400 restaurants in Texas, California and 16 other states.

The deal is expected to be finalized in the third quarter.

Taco Cabana generated sales of $ 239.4 million for the year ending Jan. 3. There are 142 company-owned establishments in Texas as well as six franchise restaurants in New Mexico.

Along with its Jack in the Box and TGI Friday franchises, Yadav Enterprises is also one of Denny’s largest franchisees, a major investor in the TGI Friday ownership group, and a franchisee of El Pollo Loco and Corner Bakery Cafe.

Addison-based Fiesta Restaurant Group will use the proceeds to repay $ 79.2 million in loans and fees and to expand its Pollo Tropical chain, its only current stake. The company’s cash balance stood at $ 67.6 million on Sunday.

“We have made the strategic decision to sell the Taco Cabana business to allow our management team to fully focus on accelerating Pollo’s growth, and we are very excited about the tremendous growth opportunities we have for Pollo Tropical activity, ”said the President and CEO of Fiesta. Richard Stockinger said in a statement.

“Anil Yadav, CEO of Yadav Enterprises, has an impressive entrepreneurial background and is a highly respected restaurant operator with proven success in a variety of limited and full service concepts,” added Stockinger. “We are confident that he will be an effective steward of the Taco Cabana brand over the long term.”

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