US-based Authentic Restaurant Brands (ARB) is reportedly planning to buy Fiesta Restaurant Group, owner of the Pollo Tropical brand.
Citing people familiar with the matter, The Wall Street Journal reported that the deal could be valued at $225m.
Pollo Tropical is a US-based Latin American-inspired chicken chain established in 1988. The restaurant offers customers drive-through and catering services.
As of 2 April 2023, Dallas-based Fiesta Restaurant Group owned 137 Pollo Tropical restaurants across the state.
According to The Dallas Morning News, it also has 30 franchised restaurants in the US, Puerto Rico, Panama, Guyana and the Bahamas.
As per The WSJ report, the deal is expected to close on 7 August 2023.
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The addition of Fiesta Restaurant Group is expected to further expand ARB’s restaurant brand portfolio.
On 17 August 2021, the company divested Taco Cabana to YTC Enterprises for a consideration of $85m.
In May this year, Fiesta Restaurant Group posted a net loss of $1.90m for the first quarter of 2023, compared to a net loss of $1.35m a year ago.
For the first quarter, which ended on 2 April 2023, the company’s total revenues were $103.4m, up 8.1% from $95.6m in the first quarter of 2022.
Fiesta’s comparable restaurant sales at Pollo Tropical in the latest quarter were up 9.7% compared to the same period last year.