Multi-brand franchisee Sun Holdings announced Monday that it acquired Freebirds World Burrito, adding to its portfolio of over 1,500 locations.
The fast casual has 64 restaurants in Texas.
“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.” Sun Holdings CEO Guillermo Perales said in a statement. “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.”
Freebirds said in 2022 that it planned to at least double its unit count over the next five years. The main areas of expansion would be infilling existing Austin, Dallas, Houston, and San Antonio. The goal was to grow at least 20 percent each year. It also introduced a new prototype with more off-premises ordering in mind.
Sun Holdings serves as a franchisee for a variety of quick-service and casual-dining concepts: Applebee’s, Arby’s, Burger King, Golden Corral, IHOP, McAlister’s, and Popeyes. It’s also the owner of Taco Bueno, which was bought out of bankruptcy in 2019. The company reached its 1,000th location in July 2019 when it opened a Popeyes restaurant in Dallas.
Starting with a single Golden Corral in 1997, Perales has built Sun Holdings into one of the biggest multi-unit franchisee organizations in the U.S. As the largest Latino franchise operator in the country, Perales told QSR in a 2019 interview that his success comes from a growth strategy focused on acquisitions, organic development, and community impact. He noted the importance of thinking like a start-up, maintaining a lean organization, and giving back to the community through initiatives like providing free meals to underserved children and supporting Latino students.
“The principles are the same today for me as they were more than 20 years ago—be the best you can be and ask the same of your people,” Perales said at the time. “And when the fruits of that hard work pay off, do it again and again. A successful franchisor will tell you that they define success by year over year growth and sale of franchises. Franchisees need to look at the business the same way—how do you grow organically, and when you have maxed out your throughput, you must invest in more locations.”
The transaction was facilitated with the expertise of Vin Batra from Soravine Advisors on the buyer’s side, Susan Miller and Sean Mirzabegian of Morgan Kingston Advisors on the seller’s side. The deal was led by Taylor Bennett, chief legal officer of Sun Holdings, and Marcelo Lopez, director of FP&A, M&A of Sun Holdings, who played instrumental roles in bringing the acquisition to fruition.
