Sun Holdings, a major franchisee of a wide range of restaurant brands like Applebee’s and Papa Johns, is acquiring Freebirds World Burrito, a 64-store, Texas-based fast casual chain, according to a press release issued last week.
The acquisition, the terms of which were not disclosed, is the second outright purchase of a brand by Sun. In 2019, the operator bought Taco Bueno as part of an effort to revive that brand.
Sun’s CEO Guillermo Perales said the acquisition “demonstrates our ability to grow not just as a franchisee, but as a brand owner.” Perales said the burrito chain is poised for growth and that Sun has an aggressive strategy for expansion, but did not elaborate.
Perales said the fast casual brand has a particular strength in customer engagement and in menu innovation.
Menu changes and LTOs are a cornerstone of the brand’s strategy. In July, Freebirds offered prime rib as a protein for a limited time, including as part of a burrito deal it called the Queso Grande. In March, the chain served up Texas smoked brisket for a limited time in another promotion centered on a premium protein.
Freebirds, like other fast casual chains this summer, has made its entry in the 2024 value wars. In June, the chain announced a series of daily discounts throughout the summer for its loyalty members, and in August it offered its burrito bowls for $7 in Texas as part of a one-day promotion.
Sun Holdings, which operates about 1,500 restaurants, has grown its store footprint both through acquisitions and development. In 2021, for instance, the operator purchased an Applebee’s franchisee with a 131-store network. That same year, the company signed a massive franchising deal with Papa John’s.