It's official. Freddy's Frozen Custard & Steakburgers has a new owner.
The Wichita, Kansas-based fast-casual chain said Thursday it has been acquired by investment funds affiliated with the private-equity firm Rhône. Terms were not disclosed, but the chain's acquisition from Thompson Street Capital Partners was reportedly for $700 million, including debt.
"The acquisition marks a pivotal moment for Freddy's," said Chris Dull, the chain's president and CEO, in a statement. "Over the last few years, we've seen steady growth and surpassed many milestones for our brand, while simultaneously strengthening our franchise system and building a loyal guest following. We're excited to take our success to the next level with this new partnership with Rhône."
Rumors that Thompson Street was shopping the brand began circulating in late 2024. The almost entirely franchised brand includes more than 550 units in the U.S. and Canada, and generated more than $1 billion in systemwide sales in the past year.
The chain is known for its thin-pressed steakburgers, patty melts, hot dogs and chicken tenders -- with a side of fries, tots or cheese curds. Freddy's frozen custard appears in indulgent Concretes, sundaes and shakes.
It was founded in 2002 by brothers Bill and Randy Simon, with business partner Scott Redler. The chain was named for the Simon brothers' father, Freddy Simon, a World War II Army veteran and self-proclaimed "regular guy," who won both a Bronze Star and Purple Heart, and raised six kids with his wife in Kansas. He inspired the brand's values, dubbed "The Freddy's Way."
With the deal, the Freddy's executive team will remain in place, the company said.
"Freddy's has and always will remain committed to The Freddy's Way, which has guided our brand to success," said Dull. "Our guests and franchisees alike can rest assured that we will always prioritize maintaining high-quality food items and genuine hospitality and cleanliness in our restaurants, just as we have for the last 23 years."
Thompson Street, which acquired the brand five years ago, has been focused on growth investments to accelerate unit growth and average unit volume expansion, as well as making other foundational improvements, the company said.
In 2024, the AUV was $1.9 million, according to the Top 500 Restaurant Chain list by Restaurant Business sister-brand Technomic. That's up from $1.88 million in 2021.
Based in New York, Rhône's portfolio includes the Italian coffee company Illycafe. The private-equity firm also owned the Brazilian steakhouse chain Fogo de Chao for about five years before selling to Bain Capital in 2023.
The deal continues a strong run of acquisitions for franchised brands, as chains like Tropical Smoothie, Dave's Hot Chicken, Jersey Mike's and others get sold for high valuations.
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