Ranking the biggest franchise owners in the U.S.

1 Ranking the biggest franchise owners in the 2021 | franchise Times 31As bad as 2020 was, the largest franchise operators didn t see the apocalyptic scenario that seemed likely in March of last year. Large, sophis-ticated and diversified, the top franchise operators mostly muscled through the year quite well. Overall, the Restaurant 200 dipped just percent in revenue as the group s total pot fell from $ billion in 2019 to $ billion in 2020. It s the first time since the Great Recession that the Restaurant 200 declined in revenue, and back then it dipped by percent. All the white-knuckle work paid off, though as the industry saw, nothing worked quite like already having a drive-thru window. That s where the results from 2020 become asym-metric and we see clearly the overall average is made up of two extremes.

2 On the positive end, operators with a high portion of quick-service concepts thrived. MUY Companies, the No. 4 operator this year, pushed sales percent higher. No. 17 on the list, QSR operator Ampex Brands, grew sales by 10 percent even after selling 32 locations. At the other end, casual dining suffered. Summit Restaurant Group, a 360-loca-tion IHOP and Applebee s franchisee, was hit hard. The operator reported a sales decline of nearly $300 million or 37 percent. The company sold off 67 locations, but casual dining was obvi-ously a rough segment of the restaurant space. Golden Corral operator Metro Corral (No. 182) shed 15 locations from its count; its $41 million in sales reveals some major declines in the buffet-focused concept.

3 In 2019, the company had an implied average unit volume of $ mil-lion; last year, it sank to $ million, a percent decline. All the chaos didn t upset the top com-panies that much. Flynn Restaurant Group kept the No. 1 spot, even while taking a $356 million hit to revenue and slipping below the $2 billion mark the company reached last year. NPC International came in at No. 2 in 2020, but that will change next year. The com-pany filed for bankruptcy in the summer of 2020 and its restaurants were sold mostly to Flynn. Carrols Restaurant Group remained at No. 3, growing sales by $75 million to $ billion even as it shed 27 Burger King restaurants to end the year with 1,009 Burger Kings and 65 Popeyes. At No. 4, MUY Companies crested the $1 billion mark for the first time as it grew sales by 6 percent, or $61 million.

4 It also shed net locations, selling off 15 Pizza Huts and adding two Wendy s and one Taco Bell. The No. 5 spot saw a bit of a shakeup. KBP Investments claimed it this year as it grew sales by $62 million to reach $986 million in overall sales. Two major trends continue: consolida-tion and diversification. The top 10 alone bought or sold 660 restaurants, shuf-fling around more locations than many operations ever reach. Across the whole list, operators grew to 30,222 locations, a slowdown from last year s pace, but growth nonetheless. Cover subjects Matt Ailey and Matt Slaine of Quality Restaurant Group are a reminder that savvy buyers are coming into the space with big goals. The No. 38 group spiked revenue some 92 percent to $300 million. (Read more about their vision on page 16.)

5 Investment bankers and transactional lawyers say 2020 was an exceptionally active year. All the new transactions and Flynn Restaurant Group s monster deal for 937 Pizza Hut and 194 Wendy s units will show up next year as the large con-tinue to get larger. But the Flynn-NPC deal is a stark reminder that there is no too big to fail in the restaurant space and diversification is paramount. As John Hamburger wrote in franchise Times sister publication the Restaurant Finance Monitor, a 1 percent sales decline pushed a $ billion dollar com-pany to the brink. NPC had a millstone around its neck in the form of a crushing $900 mil-lion debt load (over seven times debt to EBITDA) and a decade of underperfor-mance in the Pizza Hut brand, he past year will be remembered for many reasons in the restaurant space.

6 All the pain, however, may lead to fur-ther growth and sophistication and with time, the year will hopefully be a soft patch. Restaurant franchisees in 2020: Bump for most, disaster for someBy Nicholas Upton Research by Matt Haskin and Max Wolf The Top 2OO Operators Command $ billion in revenue 30,222 restaurants Top 5 firms combine for $ billion in salesParadox is a global conversational AI platform that s helping 20,000+ franchise locations shorten and simplify the hourly hiring process by making applying to jobs as simple as a text conversation, and automating candidate screening, interview scheduling, offers, onboarding, and more. Paradox is proud to support franchisees across the country from some of the franchise Times top brands including McDonald s, Wendy s, Panera Bread, Applebees, Dunkin , and Five Guys.

7 To learn more, visit franchise Times | August 20211 Flynn Restaurant Group San Francisco, CA $1,982,131,000 444 Applebee s 367 Arby s 280 Taco Bell2 NPC International Leawood, KS $1,598,580,000 947 Pizza Hut 393 Wendy s3 Carrols Restaurant Group Syracuse, NY $1,528,351,000 1,009 Burger King 65 Popeyes4* Dhanani Group Sugarland, TX $1,300,000,000 504 Burger King 339 Popeyes 41 La Madeleine5 MUY! Companies San Antonio, TX $1,041,942,000 358 Pizza Hut 319 Wendy s 81 Taco Bell6 KBP Investments Overland Park, KS $986,500,000 751 KFC 150 Taco Bell7 Sun Holdings Dallas, TX $919,500,000 242 Burger King 175 Popeyes 105 Arby s8 GPS Hospitality Atlanta, GA $626,742,000 394 Burger King 63 Pizza Hut 19 Popeyes9 Pacific Bells Vancouver, WA $579,017,000 243 Taco Bell 67 buffalo wild WingsFranchise Times Restaurant 200: Top 20 KBP Investments grew sales at the fast-est rate among the top 10 operators.

8 In 2020, the company added $62 million in sales, a 7 percent growth rate. The sales growth alone would be enough to come in at No. 171 on this very list. 10 Yadav Enterprises Fremont, CA $545,235,000 213 Jack in the Box 126 Denny s 53 TGI Fridays11 Covelli Enterprises Warren, OH $536,998,000 282 Panera Bread 6 Dairy Queen 5 O Charley s12 Tacala Vestavia Hills, AL $517,180,000 320 Taco Bell 1 KFC13 Meritage Hospitality Group Grand Rapids, MI $516,000,000 340 Wendy s14 WKS Restaurant Group Cypress, CA $500,835,000 124 Denny s 86 Wendy s 68 El Pollo Loco15 Summit Restaurant Group Richardson, TX $499,000,000 247 IHOP 113 Applebee s 17 Sonny s16 K-Mac Enterprises Fort Smith, AR $484,125,000 294 Taco Bell 11 YUM! Multi17 Ampex Brands Richardson, TX $475,000,000 196 KFC 115 Pizza Hut 23 Long John Silver s18 Sizzling Platter Murray, UT $456,887,000 327 Little Caesars 71 Wingstop 20 Dunkin 19 Rogers Corp.

9 Grapevine, TX $447,800,000 245 Sonic Drive-In 20 HAZA Foods Sugar Land, TX $425,000,000 250 Wendy s 51 Taco Bell21 Boddie-Noell Enterprises Rocky Mount, NC 342 Hardee s22 FMI Group Woodstock, NB, Canada 188 KFC 101 Pizza Hut23 VantEdge Partners Overland Park, KS 127 Taco Bell 93 Jamba Juice24 Diversified Restaurant Group Sonoma, CA 215 Taco Bell 22 Arby s25 Border Foods New Hope, MN 217 Taco Bell26 Manna Louisville, KY 157 Wendy s 83 Fazoli s27* Charter Foods Morristown, TN 242 Taco Bell 31 YUM! Multi28* Ampler Group Chicago, IL 120 Burger King 103 Little Caesars29 Desert de Oro Foods Kingman, AZ 173 Taco Bell 89 Pizza Hut30 Quality Dining Mishawaka, IN 158 Burger King 38 Chili s31 Palo Alto Greenwood Village, CO 202 Taco Bell 32 Pizza Hut32 JAE Restaurant Group Pompano Beach, FL 217 Wendy s 33 Cotti Foods Corp.

10 Rancho Santa Margarita, CA 106 Wendy s 85 Taco Bell$325-$425 MillionSun Holdings added 37 IHOP restaurants to the operation at an odd time, but exemplifies the fast-paced M&A at the top. Sun sold 48 Burger Kings, 12 Cici s, 14 Golden Corrals and 18 Krispy Kreme loca-tions. It also added 14 Popeyes and six Arby 2021 | franchise Times 33 Fourteen Foods grew by another 7 percent in 2020 to remain the largest Dairy Queen operator. Ten years ago, the com-pany had 119 loca-tions and acquired much of the rest in small M&A deals since then. How good was the pizza business in 2020? Just ask American West Restaurant Group. The pure-play Pizza Hut operator grew sales by 11 percent last year even as it shed 17 locations. 34 Doherty Enterprises Allendale, NJ 89 Applebee s 42 Panera Bread35 Wendy s of Colorado Springs Colorado Springs, CO 181 Wendy s 2 Golden Corral36* Hamra Enterprises Springfield, MO 91 Wendy s 68 Panera Bread37 Mitra QSR Plano, TX 197 KFC 40 Taco Bell38 Quality Restaurant Group Greensboro, NC 190 Pizza Hut 67 Moe s SW Grill39* Harman Management Corp.