MTY Food Group has completed its latest push into the U.S.
The Montreal-based operator of dozens of restaurant chains on Thursday said it completed its $207 million acquisition of Wetzel’s Pretzels from CenterOak Partners.
In so doing, the owner of brands like Papa Murphy’s, Pinkberry and Cold Stone Creamery has yet another mall-based treat concept in the U.S. Wetzel’s is the country’s second-largest pretzel brand. Wetzel's has 350 locations, 90% of which are operated by franchisees. System sales were $221 million last year, according to data from Restaurant Business sister chain Technomic.
It’s the latest in a long string of U.S. acquisitions that have turned what was largely an owner of Canadian food court brands into a major holder of restaurants south of the border.
That acquisition string began with the 2016 acquisition of Kahala Brands, the owner of Pinkberry and Cold Stone, among others, and continued with deals such as one in 2019 for take-and-bake chain Papa Murphy’s. Earlier this year, MTY acquired Famous Dave’s owner BBQ Holdings, which operates several other chains such as Granite City and Village Inn.
Even before the deals this year, MTY has been generating more of its revenue in the U.S. than in Canada. Fifty-four percent of its revenue last quarter came from those aforementioned acquisitions.
MTY’s U.S. brands operate more than 4,200 locations. Together, they will represent about 70% of the company’s total system sales.
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