Dive Brief:
- KBP Brands has acquired 78 Sonic Drive-in restaurants, expanding its footprint for the brand to 164 units, according to a press release.
- The units, which are located in Ohio, Kentucky, North Carolina, Tennessee and Virginia were previously owned by Sonic. KBP has worked with Inspire Brands, Sonic’s parent, since it added Arby’s to its portfolio in 2021.
- KBP Brands previously acquired 85 Sonic units from Boom Inc. in 2024, and now operates over 1,100 units. In addition to Sonic, the operator owns KFC, Taco Bell and Arby’s units across 32 states.
Dive Insight:
KBP is now the fourth-largest franchisee in Sonic’s system. This second acquisition is part of the operator’s strategy to expand its portfolio. Large franchisors are also targeting well-financed multi-unit operators who can weather sales troubles at individual stores, especially as several franchisees have filed bankruptcy in the past few years.
“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial Sonic purchase,” Mike Kulp, CEO of KBP Brands, said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”
KBP boasts about $1.5 billion in annual sales and has grown consistently over the past two decades, per the press release. Kulp said the company is able to integrate new brands and locations quickly thanks to strong relationships with franchisors and data-driven operations.
“Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation,” John Kelly, Sonic’s brand president, said in a statement.
Sonic’s franchised unit count has declined in recent years, falling from 3,231 in 2022 to 3,144 at the end of 2024, a net loss of 87 units, according to Sonic’s franchise disclosure document. Average unit volumes are nearly $1.6 million for free-standing franchised units.
Other large franchisees are expanding their portfolios through acquisitions. Flynn Group, for example, surpassed 1,000 Pizza Hut units last year with a buyout of 45 units. Doherty bought 21 Applebee's units from another operator in 2024.
