CapitalSpring Provides Financing Support to WKS Restaurant Group for Purchase of Pennant Foods

CapitalSpring, a leading private investment firm focused exclusively on the branded restaurant industry, announced today that it has provided financing support to WKS Restaurant Group (“WKS” or the “Company”), a leading multi-brand restaurant franchisee, for the Company’s acquisition of Pennant Foods, an operator of 52 Wendy’s restaurants in Southern California. This acquisition of Pennant Foods, from funds managed by Brockway Moran & Partners, is the third WKS transaction in which CapitalSpring has served as a financing partner.

In addition to CapitalSpring, the Company’s existing senior lenders, led by Wintrust Franchise Finance, served as co-lenders on the deal. Wintrust Franchise Finance is a division of Lake Forest Bank & Trust Company, N.A., a Wintrust Community Bank.

"We are very excited to work with the WKS team again and to support their initial acquisition in the Wendy's system," said Tee Isenhour, Principal at CapitalSpring. "WKS has a long history of growth and operational excellence across multiple concepts and geographies, and we look forward to future opportunities together across their brand portfolio."

“CapitalSpring brought a unique financing solution to the table that was tailor-made for this acquisition,” said Roland Spongberg, CEO of WKS. “We have enjoyed a relationship with the firm since 2011, and their consistent ability to leverage creative financing solutions to meet the needs of our business and our acquisitions makes them a trusted and reliable partner. We look forward to working with CapitalSpring to continue expanding the WKS portfolio and bring great brands to even more communities.”

Founded in 1987, WKS operates more than 180 franchise restaurant locations including Wendy’s, El Pollo Loco, Krispy Kreme Doughnuts, Denny’s, Corner Bakery Cafe, and Blaze Pizza. The Company is currently the nation’s largest El Pollo Loco franchisee, the largest Krispy Kreme Doughnuts franchisee, and a top five Denny’s franchisee, making WKS one of the leading family-owned quick service restaurant (QSR) and fast-casual operators in the country.

Sheppard, Mullin, Richter & Hampton LLP served as legal advisor to WKS in connection with the transaction. CapitalSpring was represented by Katten Muchin Rosenman LLP.