San Francisco-based Flynn Group, one of the largest franchise operators in the United States, continues to grow its extensive portfolio by acquiring 83 Wendy's restaurants across New Jersey and Pennsylvania. This strategic move further solidifies Flynn Group's position as a major player in the quick-service restaurant (QSR) sector.
Flynn Group's Expanding Empire
With this latest acquisition, Flynn Group now operates more than 2,800 restaurants under multiple renowned brands, including Applebee's, Arby's, Taco Bell, Pizza Hut, and Wendy's. The addition of these Wendy's locations brings the company's total to 277 Wendy's restaurants across six states and Washington, D.C., marking a significant expansion in its QSR portfolio .
Flynn Group's interest in Wendy's dates back to three years ago when it purchased 190 U.S. Wendy's units. The company has since expanded its Wendy's holdings internationally, with plans for substantial growth in Australia and New Zealand. The group's Wendy's locations have maintained solid sales and profitability despite industry challenges, showcasing the resilience and effectiveness of Flynn Group's business strategy .
Strategic Growth in the Quick-Service Sector
The acquisition of additional Wendy's restaurants is part of Flynn Group's ongoing strategy to increase its presence in the quick-service sector. Founder, chairman, and CEO Greg Flynn has emphasized the importance of this sector to the company's overall growth strategy. "This acquisition is part of our ongoing effort to rebalance ourselves toward quick service," Flynn told Restaurant Business. The company plans to continue adding more Wendy's locations to its holdings, reflecting its confidence in the brand's growth potential .
Flynn's journey in the restaurant industry began in 1999 when he cold-called the owner of eight Applebee's franchises and purchased them for $14 million. Just two years later, he expanded his portfolio by acquiring an additional 62 Applebee's locations, setting a trajectory of growth that continues to this day .
A Diverse Portfolio and Global Footprint
In addition to its extensive restaurant holdings, Flynn Group has also ventured into the fitness industry. Last year, as inflation battered the fast-food restaurant sector, the company made its first non-restaurant acquisition by purchasing 37 Planet Fitness locations. This move led to the company's rebranding from Flynn Restaurant Group to Flynn Group, reflecting its broader business interests .
With over 75,000 team members across 44 states and three countries, Flynn Group's global footprint and geographic diversity allow it to weather local challenges and seize business opportunities worldwide. The company's mission is to be the premier operator within each of its brands, and it has developed a uniquely empowering culture that balances centralized oversight with decentralized operations. This approach enables Flynn Group's leaders to take a long-term view of success and invest appropriately in people and assets to achieve sustainable premier results .
Speculation of a Major Stake Sale
Earlier this year, rumours surfaced that Flynn Group was exploring a majority stake sale that could value the company at more than $5 billion, including debt. According to sources familiar with the matter, Flynn Group was working with Bank of America on a potential sale process, with private equity firms and sovereign wealth funds expressing interest in a deal .
The Ontario Teachers' Pension Plan (OTPP) and private equity firm Main Post Partners, both investors in Flynn Group, were reportedly interested in selling part of their stakes while remaining invested in the company following any potential deal. However, no such transaction has materialized, and Flynn Group continues to focus on expanding its operations and maintaining its position as a leading franchise operator in the United States .
