Private equity firm Bain Capital is reportedly looking to acquire large franchisee Sizzling Platter for more than $1 billion, including debt, according to Reuters.
The Utah-based company operates over 750 units across Little Caesars (in the U.S. and Mexico), Jamba, Wingstop, Dunkin’, Jersey Mike’s, Cinnabon, Red Robin, and Sizzler. Sizzling has been working with investment banks UBS and Deutsche Bank on a sales process for several months, sources told Reuters.
The publication was also told that Sizzling expects to earn $175 million in EBITDA in 2024.
The franchisee is currently owned by CapitalSpring. Sizzling is led by CEO Nathan Garn, who ascended into his role in July after 12 years with the company.
Sizzling has more than 450 Little Caesars units, more than 140 Wingstop units, and more than 90 Jamba units. FitchRatings said Little Caesars accounts for 57 percent of revenue.
As of September, Sizzling had 28 straight quarters of positive same-store sales in its quick-service business, excluding the first half of 2020, according to FitchRatings. Also, systemwide restaurant growth and high single-digit comps growth have boosted top-line sales above 20 percent annually over the past two years.
Sizzling was founded in 1963 after opening a Sizzler location. Over the decades, it began franchising other concepts, most recently Cinnabon and Jamba in 2022.
Bain has offices on four continents, more than 1,850 employees, and approximately $185 billion in assets under management. The firm purchased Brazilian steakhouse Fogo de Chão in 2023 for an undisclosed amount.
The move is another example of private equity’s growing interest in franchised restaurants. This year alone, Blackstone bought Tropical Smoothie Cafe for about $2 billion and bought a majority interest in Jersey Mike’s for around $8 billion. Also, the group became an equity investor in 7 Brew, a coffee chain that has grown from single digits to 300 stores in about four years.
Last year, Roark Capital acquired Subway for around $9.6 billion.
