SAN ANTONIO (KTSA News) — Taco Cabana’s parent company is selling the San Antonio-founded restaurant with a price tag of $85 million to a national restaurant operator.
Fiesta Restaurant Group, Inc. made the decision to sell the company to YTC Enterprises, LLC, an affiliate of Yadav Enterprises, Inc., that operates more than 400 restaurants in Texas, North Carolina and sixteen other states including Jack In The Box, Denny’s, TGI Friday’s, El Pollo Loco and Corner Bakery Cafe.
“We made the strategic decision to sell the Taco Cabana business to allow our leadership team to focus completely on accelerating Pollo growth, and we are very excited about the tremendous growth opportunities we have for the Pollo Tropical business,” Fiesta President and Chief Executive Officer Richard Stockinger said in a press release. “Anil Yadav, the CEO of Yadav Enterprises, has an impressive entrepreneurial background and is a highly-respected restaurant operator with a proven record of success across a variety of limited and full-service concepts. We are confident he will be an effective steward of the Taco Cabana brand for the long-term.”
The $85 million cash purchase by YTC Enterprises will go towards repaying a $74.6 million loan and $4.6 million in fees. The sale is expected to close by September 30.
A portion of Fiesta’s remaining cash balance of $67.6 million is allocated for investments in the Pollo Tropical brand.
Taco Cabana was founded in 1978 by Felix Stehling and currently operates more than 150 locations.