Owner of NFL team, Six Flags buys Johnny Rockets

Nation's Restaurant News,  Feb 19, 2007  

Tags: NFL, team

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Washington -- Daniel M. Snyder, owner of the Washington Redskins and chairman of Six Flags Inc., is acquiring the 202-unit Johnny Rockets diner brand through his RedZone Capital private-equity firm for an undisclosed price.

The sellers reportedly are Centre Partners Management, Apax Partners Inc. and heirs of chain founder Ronn Teitelbaum, who died in 2000, four years after he launched Johnny Rockets in Los Angeles.

Snyder's firm disclosed the purchase agreement Feb. 9 and said the deal is expected to close next month.

Lake Forest, Calif.-based Johnny Rockets Inc. and its franchisees operate full-service, 1940s-malt-shop-style restaurants in 28 states, Puerto Rico and seven foreign countries. U.S. systemwide sales for the fiscal year ended last May were $199.2 million, up 12.5 percent from the prior year, according to the latest Nation's Restaurant News Second 100 report. That study also indicated that Johnny Rockets domestic store count had risen by a net five locations for the year to 166 outlets, including 120 franchised branches.

In his first foodservice venture, Snyder reportedly envisions an expansion of the chain to 1,000 locations within five years, including Johnny Rockets Express units in airports, malls, stadiums and theme parks. Branches already operate on several cruise ships.

According to some published reports, analysts had assessed the value of the privately held company at as much as $500 million. Chief executive Mike Shumsky currently leads Johnny Rockets.

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