GLENDALE, CALIF. — Dine Brands Global Inc. is acquiring the Fuzzy’s Taco Shop brand from private equity firm NRD Holdings Co. for $80 million. Fuzzy’s is a fast-casual restaurant concept serving Mexican favorites with a Baja twist.
Fuzzy’s has 138 restaurants in 18 states and is expected to generate $230 million in sales in 2022, according to Dine Brands Global. Founded in 2003, Fuzzy’s offers Mexican-style cuisine at a value price point.
“Fuzzy’s Taco Shop is a compelling business with a loyal customer base and a distinct identity,” said John Peyton, chief executive officer of Dine Brands. “It is an attractive asset with a tremendous growth trajectory and will be a complementary addition to our highly franchised portfolio. 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.”
Paul Damico is the CEO of Fuzzy’s Taco Shop and will remain with the brand following the acquisition.
NRD Holdings acquired a majority stake in Fuzzy’s Taco Shop in 2016.
“This transaction is a textbook example of how NRD identifies and grows brands, which can result in successful outcomes for all stakeholders, including company management, company employees, franchisees and investors of NRD Capital,” said Aziz Hashim, managing partner at NRD.