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These 13 companies you've never heard of control dozens of the most popular chains in the world, from Burger King to Taco Bell
These 13 companies you've never heard of control dozens of the most popular chains in the world, from Burger King to Taco Bell
Kate TaylorJan 24, 2019, 02:32 IST
Hollis Johnson
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Some of the biggest names in the restaurant industry, such as Burger King, Taco Bell, and Olive Garden, are actually owned by companies that most customers don't know exist.
Here is a look at who actually owns some of the biggest names in the restaurant business.
Your favorite fast-food chain may not be exactly what it seems.
While chains like Burger King, Taco Bell, and Olive Garden have name recognition, many of the biggest brands in the restaurant business are actually owned by mega-companies. These holding companies and private-equity firms often invest in or own a number of brands, in and outside of the restaurant industry.
As running a restaurant gets more expensive, consolidation is on the rise, with chains seeking to pool resources and save money. In 2018, there were more than 700 food-and-beverage industry mergers and acquisitions, according to Zenith Global data.
Here is a look at which companies actually own some of the biggest names in the restaurant business:
"We don't need to do an acquisition to build scale. We already have scale," David Gibbs, Yum Brands' president and chief financial officer, told Business Insider in December.
Gibbs says he believes scale is becoming increasingly important. For example, the company's scale helped make possible its deal with GrubHub, in which Yum Brands purchased a $200 million stake in the delivery company.
"That's why you're seeing so many other companies go out and try to acquire new concepts just to try and build their own scale," Gibbs said.
Restaurant Brands International is the parent company of Burger King, Tim Hortons, and Popeyes.
"In the past, you've seen us be opportunistic," executive chairman Daniel Schultz said in a call with investors on Wednesday, regarding the company's acquisition strategy. "We've acquired three incredible brands that we think have great global growth potential."
Going forward, Schultz said that Restaurant Brands International would consider acquiring other "iconic" brands with significant long-term growth potential.
Darden Restaurants
Darden Restaurants is the Orlando, Florida-based company that owns eight chains, including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen.
"Really, nothing has changed in the last 40 years with dining," Darden CEO Gene Lee said in a presentation earlier in January.
"With all the technological advancements, if you think about it, we're still basically doing the same thing," Lee continued. "I don't see in the next 10 years any dramatic changes other than a continued transparency with what you're serving people. And, I think, you are going to have to be a little bit more convenient for them."
One of the most massive food-and-beverage giants is JAB Holding, the investment arm of the secretive Reimann family. JAB owns chains including Krispy Kreme, Panera, Caribou Coffee, Au Bon Pain, and Pret A Manger, as well as Keurig Dr. Pepper and bottled-water brand Core.
Focus Brands is the franchisor and operator behind Carvel, Cinnabon, Schlotzsky's, Jamba Juice, Moe's Southwest Grill, Auntie Anne's, McAlister's Deli, and Seattle's Best Coffee.
The company is owned by private-equity firm Roark Capital, which is reportedly considering an IPO for Focus Brands in 2019. Roark's portfolio expands beyond food and beverage, with stakes in companies such as Anytime Fitness and Drybar, as well as Inspire Brands, another restaurant-centric company.
Inspire Brands
In September, Inspire Brands announced it would be acquiring burger chain Sonic for $2.3 billion, including debt. The deal follows Inspire Brands — which already owned Arby's — closing on a deal to acquire Buffalo Wild Wings and Rusty Taco earlier in 2018.
"We like brands that are great brands, that have gone through a period of great success, and may be in a temporary period with a little bit of a challenge, where there's an opportunity to come in and get it back on a path," Inspire CEO Paul Brown told Business Insider at the time.
Inspire Brands is majority-owned by Roark Capital.
Dine Brands is the parent company of Applebee's and IHOP. According to CEO Steve Joyce, the company is on the hunt to acquire a new brand.
"The easy thing would be to say, well, look, our stock is really undervalued, let's just buy a bunch of stock," Joyce said. "That's not the company I want to work in. And that's not the company anyone else wants to work in."
Bloomin' Brands is the parent company of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse.
In 2018, activist investor Barington Capital Group encouraged the company to spin off or sell some of the chains to focus on Outback Steakhouse.
Brinker International
Brinker International owns Chili's Grill & Bar and Maggiano's Little Italy. Previously, the company has owned chains including Romano's Macaroni Grill, On the Border, and Corner Bakery Cafe.
Golden Gate Capital
Golden Gate Capital owns Bob Evans and California Pizza Kitchen, and it holds a majority stake in Red Lobster. The holding company's portfolio also includes Eddie Bauer, Pacific Sunwear of California, and Next Model Management.
Jollibee Foods Corporation
In addition to its namesake Jollibee, Jollibee Foods Corporation also invested in American chains such as chef Rick Bayless' Tortas Frontera and Smashburger, which JFC acquired in 2018. JFC additionally serves as an international franchisee for a number of brands, including Dunkin' Donuts and Burger King.
Sun Capital
Private-equity firm Sun Capital owns restaurant chains including Friendly's, Boston Market, and Johnny Rockets.
Landry’s
Landry's, Inc. owns and operates a wealth of smaller chains, including Landry's Seafood, Bubba Gump Shrimp Co., and Rainforest Cafe. The company's portfolio spans more than 60 concepts and more than 600 locations.
