Australia-based private equity firm Allegro Funds has reached an agreement with the US-based restaurant franchisee firm Flynn Restaurant Group (FRG) to divest its stake in Pizza Hut Australia.
Financial details of the deal have not been disclosed.
FRG operates more than 2,350 restaurants, which include Pizza Hut franchisees, Hut American, Applebee’s, Taco Bells, Paneras, Arby’s and Wendy’s.
According to a Business News Australia report, the acquisition is said to be the first for FRG beyond its home base.
The transaction is expected to be completed by the end of June 2023.
In 2016, Allegro purchased a stake in Pizza Hut Australia from its US-based parent company Yum! Brands.
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Allegro collaborated with Pizza Hut’s CEO Phil Reed and its management team to transform the business into one of Australia’s fastest-growing quick service restaurant (QSR) brands.
The company currently has an established network of 259 franchised stores and plans to expand its restaurant count significantly.
As of May 2023, the company had achieved 51 consecutive months of same-store sales growth and delivered nearly $288m in network sales.
Pizza Hut Australia is expected to grow through FRG’s investment backing and QSR expertise.
Last September, Pizza Hut Canada partnered with Serve Robotics to offer a door-to-door robot delivery service in Vancouver, British Columbia.
Under a two-week pilot programme, select customers who placed their order through the Pizza Hut app received their order from a robot.