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Five Guys closes $100M credit facility

Paul Frumkin, Managing Editor

March 25, 2011

2 Min Read
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Paul Frumkin

Five Guys Burgers and Fries, the rapidly expanding fast-casual burger brand, primed the pump for further growth by increasing the size of its credit facility with GE Capital, Franchise Finance recently.

The burger specialist closed on a $100 million facility, made up of a $45 million revolving line of credit and a $55 million term loan. Funding was provided through GE Capital Financial Inc., the bank affiliate of GE Capital, Franchise Finance.

Founded in 1986 in Arlington, Va., Five Guys today has more than 100 company-owned and 640 franchised locations in the United States and Canada, and features a streamlined menu of hamburgers, hot dogs and French fries.

“GE Capital’s ability to grow with us, from a $14 million credit facility in 2008 to a $100 million credit facility in $100 million in 2011, has been a critical part of our success,” said Peter Hanson, chief financial officer of Five Guys Holdings Inc. “In completing the refinancing of our existing credit facility and providing us with $55 million in new capital, GE has put us in a great position to deliver on our ongoing development plans.”

Five Guys has opened more than 375 restaurants over the past three years.

Sometimes compared to In-N-Out Burger on the West Coast, Five Guys is a leader in the “better burger” segment, which also includes Smashburger, Good Burger and The Habit Burger Grill.

The brand, which began franchising in 2002 and entered Nation’s Restaurant News’ Top 100 in 2010, grew its systemwide sales by almost 69 percent in 2009 to $499 million, according to NRN research.

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Contact Paul Frumkin at paul.frumkin@penton.com.
 

About the Author

Paul Frumkin

Managing Editor, Nation’s Restaurant News

After graduating from the State University of New York at New Paltz with a degree in English, Paul Frumkin attended the Culinary Institute of America in Hyde Park, N.Y., graduating with honors in 1980. That year he moved to New York City where he worked for several foodservice and hotel publications. In 1984 he co-wrote “The Norman Table, The Traditional Cooking of Normandy,” with chef-restaurateur Claude Guermont. The cookbook, which was published by Charles Scribners Sons, won the “Best European Cookbook” award from the International Association of Culinary Professionals in 1985. He joined Nation’s Restaurant News in 1990 and has held a number of editorial positions there. He currently covers legislative policy and the Northeast for NRN.

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