NPC International, the world’s largest Pizza Hut franchisee, on Wednesday announced an agreement to buy 39 Wendy’s restaurants for $36.6 million.
The Overland Park-based company operates 1,233 Pizza Hut restaurants. It has been scooping up Wendy’s restaurants since July 2013, when the burger chain shifted from a company-operated model to a franchise model.
NPC International now has 144 Wendy’s. This is the company’s fifth acquisition of Wendy’s, but the first since July 2014.
NPC chief financial officer Troy Cook said the company is picky about what it buys.
The 39 Wendy’s are in the Raleigh-Durham area in North Carolina. Cook said NPC has coveted the market. According to NPC, 35 of those restaurants generated about $59 million in net product sales in 2015.
NPC said in its news release it will pay cash for the restaurants. As of March 29, NPC reported that it had $45.8 million in cash and cash equivalents, according to its first-quarter earnings report.
Of the past Wendy’s acquisitions, this deal is the most expensive. NPC is paying an average of $938,462 per Wendy’s. Cook said this was because most of the restaurants have been renovated.
The sale is expected to close in late July.