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12/05/2022

Dine Brands to Buy Fuzzy Taco

The parent company of IHOP and Applebee's will pay $80 million in cash for the fast-casual chain.
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Fuzzy Taco exterior
Paul Damico, a 35-year industry veteran at FOCUS Brands, will continue as CEO of Fuzzy’s Taco under the Dine Brands umbrella.

Dine Brands Global Inc.  will buy Fuzzy’s Taco Shop from Experiential Brands LLC, a wholly owned subsidiary of NRD Holding Company, for $80 million in cash.

Founded in 2003 in Fort Worth, Texas, is a fast-casual restaurant concept serving Mexican favorites with a Baja twist.

Fuzzy’s management team includes Chief Executive Officer Paul Damico, a 35-year industry veteran at FOCUS Brands, Moe’s Southwest Grill, and Global Franchise Group. Damico will continue to drive the future of Fuzzy’s under the Dine Brands umbrella.

“By adding Fuzzy’s to the Dine Brands family, we are investing in a high-growth concept as part of our longer-term growth agenda, which is aligned with our strategy to build shareholder value,”  said John Peyton, Chief Executive Officer of Dine Brands.

Fuzzy’s has 138 restaurants in 18 states; 98% of locations are franchises.  The transaction is expected to be immediately accretive to earnings. Net of tax benefits, the purchase price is approximately $70 million.