NNN Beast - Net Lease News Digest’s Post

What's next for Tropical Smoothie Cafe after its acquisition? Private equity funds managed by Blackstone have successfully acquired Tropical Smoothie Cafe from Levine Leichtman Capital Partners, valuing the fast-casual chain at approximately $2 billion according to the Wall Street Journal. This acquisition also introduces Nigel Travis, former CEO of Dunkin’ Brands, as the new chairman of Tropical Smoothie Cafe, marking a significant leadership shift. Founded in 1997 and headquartered in Atlanta, Tropical Smoothie Cafe is a leading franchisor with over 1,400 locations across 44 states. With the new backing from Blackstone, the company is poised for accelerated expansion and innovation. “With Blackstone’s capital and resources, we look forward to accelerating the company’s continued expansion across the country and supporting innovation to further capitalize on the brand’s unique positioning,” said Blackstone executives Peter Wallace and Michael Staub. The acquisition follows significant growth under Levine Leichtman Capital Partners, who acquired the chain in 2020 when it had 870 locations. In 2023 alone, Tropical Smoothie Cafe opened over 175 new locations, with 70% launched by existing franchisees. 👉 Click link for details: https://lnkd.in/gyy7-s7k #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #tropicalsmoothiecafe

Exciting News: Freebirds World Burrito Joins the Sun Holdings Family! 🌯 We are thrilled to announce that Sun Holdings has successfully acquired Freebirds World Burrito, a beloved fast-casual restaurant chain known for its vibrant atmosphere and delicious customizable burritos. With this acquisition, Sun Holdings welcomes 64 new Freebirds locations across Texas, further expanding Sun Holdings’ presence in the state. Guillermo Perales, CEO of Sun Holdings, expressed his enthusiasm for the acquisition, stating, "Freebirds brings a distinct and vibrant energy to our portfolio. The brand’s commitment to quality ingredients and a customer-centric approach resonates well with us as operators. We believe we can learn from Freebirds in customer engagement and menu innovation, while bringing our expertise in operations and growth." Perales added, "This acquisition is especially notable for Sun Holdings as it demonstrates our ability to grow not just as a franchisee, but as a brand owner. Freebirds is poised for growth, and we have an ambitious expansion strategy that we are excited to get to work on.”  We extend our deepest gratitude to the professionals and teams whose expertise and dedication were instrumental in making this acquisition a reality: Vin Batra from Soravine Advisors, representing the Buyer's side. Susan Miller and Sean Mirzabegian of Morgan Kingston Advisors, representing the Seller's side. Special recognition to Taylor Bennett, JD, MBA, Chief Legal Officer of Sun Holdings, and Marcelo Lopez, Director of FP&A, M&A at Sun Holdings, who played instrumental roles in bringing the acquisition to fruition. #Freebirds #Acquisition #FastCasual #ExpandingPresence #Texas #SunHoldings

Will Fat Brands' Twin Peaks and Smokey Bones IPOs Serve Up Financial Relief? Fat Brands has confidentially filed to take its Twin Peaks and Smokey Bones restaurant chains public through an IPO, just days after the company and its chairman, Andy Wiederhorn, were indicted on charges related to an alleged $47 million loan scheme. Both Fat Brands and Wiederhorn have denied the charges. Fat Brands acquired Twin Peaks in 2021 and Smokey Bones in 2023. The company plans to convert more than half of Smokey Bones' 61 corporate-owned locations into Twin Peaks restaurants. The IPO proceeds will be used to deleverage the company’s balance sheet. After a string of acquisitions over the past four years, totaling a half dozen and expanding its portfolio to 17 food service companies, Fat Brands' announcement of its IPO doesn't come as a shock. While these deals have filled its pipeline with over 1,000 units, they've also burdened Fat Brands with $1 billion in debt. Could taking these brands public be the recipe for turning its balance sheet green? Vincent Knipp 📞 (972) 755-5205 ✉️ Vincent.Knipp@marcusmillichap.com Andy Cepeda 📞 (972) 755-5138 ✉️Andy.Cepeda@marcusmillichap.com 👉 Click link for details: https://lnkd.in/gF7ffYNh #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate 

Are these acquisitions genuine plays to expand, or are big corporations buying out chains to write off their losses & run them into the ground? With Restaurant Armageddon in full effect, we've seen some acquisitions & mergers that will shake up the industry. Here's a few big moves to keep an eye on: 1️⃣ ARB Grabs Fiesta Restaurant Group ARB just dropped $225 million to take Fiesta Restaurant Group off the public market. This power move includes snagging Pollo Tropical and Taco Cabana, but is this really about expansion, or is it more about stripping assets and cutting losses? 2️⃣ Darden Snags Chuy's for $605 Million Darden Restaurants, the crew behind Olive Garden & LongHorn Steakhouse, is adding some Tex-Mex flair to their game by buying Chuy's. A $605 million deal sounds exciting, but is Darden genuinely looking to grow Chuy's, or is this a play to consolidate and dominate? 3️⃣ MOD Pizza Joins Elite Restaurant Group MOD Pizza, feeling the heat from bankruptcy pressures, decided to sell its entire equity to Elite Restaurant Group. On the surface, this deal seems like a lifeline, but could it be a quick fix that ends in MOD being squeezed dry? 4️⃣ Brix Holdings Scoops Up Clean Juice Brix Holdings, known for Friendly's and Red Mango, has acquired Clean Juice. They're diving into the health & wellness market, but is this really a fresh start, or just another chain being set up for a quick buck? 5️⃣ Blackstone Drops $2 Billion on Tropical Smoothie Cafe In a massive move, Blackstone is buying Tropical Smoothie Cafe for $2 billion. A major play in the fast-casual space, but with Blackstone’s reputation, are they in it for the long haul or just looking to flip it for profit? 6️⃣ Fortress Investment Group Acquires Red Lobster Fortress Investment Group took over Red Lobster back in 2020. They claim it's a strategic grab to leverage Red Lobster's strong brand, but is this about growth, or is Fortress setting the stage for a slow decline? These moves are set to shake up the industry. Are these buyouts truly about expanding and innovating, or are they calculated moves to cut losses and exit when the time is right? Let me know in the comments.

Tropical Smoothie is being sold to Blackstone for $2 Billion. Is the market for restaurant mergers and acquisitions warming up? Tropical Smoothie Cafe's acquisition by Blackstone for nearly $2 billion signals a significant milestone for the health-conscious chain, which boasts nearly 1,400 locations across the United States. CEO Charles Watson highlights the brand's commitment to exceptional guest experiences, as the sale follows reports earlier last year of Levine Leichtman Capital Partners' intention to sell the company. The move reflects Blackstone's continued interest in the restaurant sector, with recent investments including discussions with Jersey Mike’s and equity participation in 7 Brew. In 2023, Tropical Smoothie achieved impressive financial growth, with systemwide sales reaching $1.25 billion and a substantial increase in unit count. Despite initial considerations for an IPO in 2022, the company opted for acquisition, citing market volatility. In the backdrop of high inflation, subdued profitability, and elevated interest rates, the mergers and acquisitions market has experienced a notable deceleration in recent years. However, there appears to be a shifting trend as buyers are increasingly drawn to quality concepts. Contact us for more restaurant news. Andy Cepeda 📞 (972) 755-5138 ✉️Andy.Cepeda@marcusmillichap.com Vincent Knipp 📞 (972) 755-5205 ✉️ Vincent.Knipp@marcusmillichap.com 👉 Click link for details: https://lnkd.in/gw3Evvef #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #tropicalsmoothiecafe

The Phoenix Business Journal recently published an article featuring Maison Solutions' announcement to acquire Lee Lee Oriental Supermart, one of Arizona's largest and longest-running Asian grocers. ⬇Read the full article at the link below to learn more about this step in our strategic path towards expanding! #grocery #acquisition #investingopportunities #investors #businessstrategy #growthstrategy #asianfood

Brands continue growth trajectories fueling some large acquisition potential. #cre #expansion #franshising #brands #mergersandaquisitions #economicdevelopment #development #capital #business #carolinas #tenantrep #creinvestments #investing https://lnkd.in/ezxkaBne

Is JB Hi-Fi’s recent agreement to acquire a 75% stake in E&S Trading (e&s) a good acquisition? JB Hi-Fi’s agreed price of $47.8 million for 75% of e&s values the entire company at around $63.7 million. E&S’s FY24 revenue of $230 million and EBITDA of $7 million (a low 3% Ebitda margin), implies JB is paying a premium multiple of 9.1x. When compared to JB’s own trading multiple that hovers around 8-10 (similarly to Harvey Norman), 9.1x for e&s seems high. But, this isn’t just about JB Hi-Fi growing in size—it’s about entering the premium appliance market, which complements their existing product range and vice versa. Unlocking potential synergies in JB Hi-Fi’s infrastructure, particularly in supply chain and technology, should enhance e&s’s operations and profitability. Additionally, JB Hi-Fi’s proven national presence offers a clear path for expanding e&s beyond Victoria. With the current stakeholders of e&s holding 25% (aligning the interests) the upside for them should also be positive as the business scales nationally. My View - the makings of a great acquisition 👍 As a customer of both brands that recently renovated, I can definitely see alignment by JB taking the reigns and bringing in the customer markets of: New Build & Renovation market into the JB house. #mergers #acquisitions https://lnkd.in/gkGef2C8

Industry News: McDonald’s Officially Unveils New Spinoff Brand, CosMc’s McDonald’s is set to open its new spinoff brand, CosMc’s, in Bolingbrook, Illinois, this week. The brand is targeting to have 10 outlets running, including nine in Texas, by the end of 2024. The fast-food company identifies CosMc’s as an experimental venture and plans to evaluate its performance over a year by analyzing data to explore its potential as a smaller format chain. https://lnkd.in/gh9pchKq ————————————————— 💥Over 16 MILLION Square Feet Represented💥 ✅Visit newenglandretail.com for more! ————————————————— #realestate #newenglandretail #property #forsale #retail #realestateinvesting #business #broker #realestatenews #properties #investor #investmentproperty #connecticut #nerp #newengland #connecticutnews #newenglandrealestatenews #McDonalds #CosMc’s

Zambrero, the fast-growing Mexican-themed restaurant chain founded by admired billionaire, Sam Prince has announced franchise commitments for its next 100 locations as it celebrates the opening of its 300th store this week. This rapid expansion follows a significant capital raising in late 2022, where Zambrero secured $250 million from London private equity firm Metric Capital and Scott Farquhar’s Skip Capital, as reported in the The Australian Financial Review. Zambrero’s growth mirrors that of other innovative fast food icons, such as Guzman y Gomez Mexican Kitchen (GyG), showcasing a broader trend in the industry. With plans to close in on its 500th franchisee within two to three years, Zambrero is rapidly redefining the fast food landscape through fresh, high-quality offerings. For property investors, this expansion creates a lucrative opportunity in the commercial property sector. The increasing demand for prime locations to accommodate these thriving franchises signifies strong investment potential, particularly as Zambrero expands across Australia’s three largest cities—Sydney, Melbourne, and Brisbane. Aligning with rapidly growing brands like Zambrero and GyG offers investors the chance to secure stable returns and enhance property value. As these fast food innovators continue to flourish, strategic investments in prime locations are set to yield significant rewards, driven by the ongoing expansion plans of these market leaders. The popularity of the Zambrero brand is further highlighted by recent investment sales. Burgess Rawson sold two Zambrero assets on incredibly sharp yields less than a year ago—5.37% in Ulladulla and 3.67% in South Yarra—despite the market uncertainty at the time. Read more here: https://loom.ly/0Cw5X1M To find out why fast food is fast becoming the most important asset class in commercial property, get in touch with an expert: Yosh Mendis - 0434 413 188 Beau Coulter - 0413 839 898 Andrew Havig - 0478 010 990 #burgessrawson #commercialrealestate #realestate #property #wealth #insights #commercialproperty #privateequity #highquality #propertyinvestors #propertyinvestor #afr #guzman