If you've ever taken any kind of American road trip, you start to understand that some kinds of restaurants are just ubiquitous. There will always be a breakfast diner, serving up flapjacks and pouring all-you-can-drink coffee sometimes 24 hours a day. And there will definitely be a sports bar--someplace with cheap happy hour specials, a handful of regulars, and the TVs playing whatever sports game is in season.
Dine Brands Global (DIN) has captured the needs of the average American town thanks to its two big restaurant chains. Where there's a neighborhood, there's an Applebee's Neighborhood Grill + Bar nearby where customers can find a classic burger, chicken tenders, and other American food classics. For those needing to find some bacon and eggs and a warm cup of joe, they can find an IHOP practically anywhere. These famous flapjacks can be found in 12 countries around the world, and just about any town big enough to allow for a pit stop.
The California-based International House of Pancakes started up in the late 50s, gaining popularity and shortening its name to IHOP in the 70s. Eventually, the restaurant added some lunch and dinner items to the menu, but it will always be known as a breakfast destination. In 2007, IHOP scooped up the bar & grill chain Applebees, forming Dine Brands Global.
And now, after fifteen years of filling bellies, Dine Brands Global is adding another new restaurant to its lineup.
Shutterstock
Dine Brands Global Acquires Fuzzy's Taco Shop
Breakfast? Check. Neighborhood grill? Check. Taco chain with a unique take on Mexican food and a hilarious name? Dine Brands Global has agreed to purchase Fuzzy's Taco Shop for an estimated $80 million in cash. The Texas-based taco spot has been around since 2003, currently running 138 restaurants in 18 states. Fuzzy’s CEO Paul Damico will stay on, continuing to lead Fuzzy’s under the umbrella of Dine Brands.
According to Dine Brands CEO John Peyton, Fuzzy’s is an excellent acquisition for the company. "Fuzzy’s Taco Shop is a compelling business with a loyal customer base and a distinct identity. It is an attractive asset with a tremendous growth trajectory and will be a complementary addition to our highly franchised portfolio,” he said. “By adding Fuzzy’s to the Dine Brands family, we are investing in a high growth concept as part of our longer-term growth agenda, which is aligned with our strategy to build shareholder value.”
Fuzzy's Taco Shop Adds a Fresh New Flavor Profile to Dine Brands
Dine Brands Group may be best known for its two big American style classics, but the company is obviously set to branch out with this newest acquisition. According to Peyton, “Paul and his team have done a tremendous job creating a solid foundation for the business, as evidenced by its attractive financial profile and differentiated brand positioning within its segment. We are eager to work with Paul and his leadership team as we execute on accelerating Fuzzy’s growth.” The restaurant has been recognized for its positive growth and franchising opportunities in the past, making it a welcome, modern addition to Dine Brand Global's profile.
