"Unbridled Capital recently provided sell-side advisory to both Pizza Hut of Arizona and Kyte Enterprises on the sale of 30 Pizza Hut restaurants throughout Arizona. The restaurants were sold to new franchisee EMERGE! INC., led by Kamal Singh. This acquisition will bring Pizza Hut into EMERGE’s existing brand portfolio which includes KFC, Taco Bell, and Sonic restaurants.
In 1964, Brent Kyte and three other young partners from Topeka, Kansas were so impressed by Dick Hasseur, the first Pizza Hut franchisee, they decided to begin their own Pizza Hut franchise. Each partner put up $2,000 and then borrowed an additional $5,000 from Arizona Bank in Flagstaff to open their first Pizza Hut on October 27, 1965.
Brent admits, the first six months were tough. Even though the location opened with great sales, the manager they brought from Topeka was not making the cut. The four partners drew straws to determine who would take over the manager role and relocate to Flagstaff; Brent won. Six months later Brent was able to pay off the incurred debt and the store became profitable. The four partners grew increasingly ambitious and began to pursue additional areas for expansion. Two years later, Pizza Hut Inc. offered up Tucson, and the partners jumped at the opportunity.
By 1975 the group reached $1M in sales and set their sights on further expansion. The shareholders then hired Pat McConaughey (CPA) in 1976. Pat eventually became the President of PH of AZ and led the company to new heights.
Pat and Brent built a strong and exceptional management team over the decades that consistently ranked in the top 10 of many of PHLLC’s operations metrics. Of the myriads of Pizza Hut businesses sold by Unbridled Capital, their business has had the highest AUVs so far.
“Unbridled Capital stands miles ahead of other advisors when it comes to deal-making within the Pizza Hut System, so when it came time to select an advisor, we knew we wanted to partner with Unbridled. Rick Ormsby and his team were essential in navigating us through some challenging deal headwinds; the loss of the original buyer (due to external reasons) and transacting through COVID, to name a few. Throughout the entire process, Unbridled demonstrated endurance, creativity, and stamina that led us to a positive outcome. The team was unwavering in their confidence and ability to see the transaction through and execute our ambitions. Without a doubt, we would only recommend Unbridled Capital to any peer looking to sell or finance their business,” said Pat McConaughey.
“Brent and Pat built an extraordinary business over the past five decades. Leading such a tenured client through a transaction is not a commitment we took light-heartedly. I’m especially proud of the resiliency shown by our Unbridled team to keep this deal on track despite the unprecedented times presented by COVID-19. We wish Pat, Brent, and their shareholders nothing but success as they enter a new chapter of their lives. We also congratulate Kamal Singh and the entire EMERGE! team on another successful transaction with Unbridled. Kamal is known as a brand champion, and we are confident that his team will accomplish great things as they continue to grow their footprint in Pizza Hut. We are really thankful to have been part of this transition for everyone,” said Rick Ormsby, Managing Director.
As a condition of this closing, Unbridled Capital will make a charitable contribution to the Pizza Hut museum at Wichita State University. We want to show our respects to the fantastic legacy of the Pizza Hut brand. We want to be a blessing because we’ve been blessed.
Unbridled Capital provides the franchise community with unrivaled investment banking services. For more information, please contact Rick Ormsby at 502-252-6422 or [email protected].