Franchisee Southpaw buys 43 Taco Bell restaurants

Mas Restaurant Group is selling more Taco Bells.

The Houston-based operator, backed by the New York investment firm Bessemer Investors, has sold 43 Taco Bell locations in Ohio to Southpaw, a 180-unit franchisee of Taco Bell and Dunkin’ locations.

The deal follows an earlier sale of 44 Taco Bell locations in Texas to Ghai Restaurant Group.

Terms of the deal were not disclosed. But Andrew Mendelsohn, managing director with Bessemer, said the deal “underscores the strength” of Mas Restaurant Group’s [MRG] operations and Ohio footprint. And he cited “the tremendous value of these restaurants,” saying they were “built by the strength of our culture and the dedication of our team members.”

“While we are passing the torch on these specific locations,” he added, “our core mission of best-in-class customer service remains unchanged.”

Southpaw operates its restaurants in New York, New Jersey, Maryland, Kentucky, Georgia, and Louisiana and has now added Ohio to that mix.

Taco Bell has been one of the restaurant industry’s most consistent performers for years and has seen its same-store sales soar more recently despite a tough U.S. restaurant market. That includes an 8% increase in same-store sales in the first quarter.

That consistent performance, plus the lack of major fast-food Mexican competitors, has made Taco Bell the most valuable franchise on the secondary market. Industry sources have indicated that groupings of the chain’s restaurants are typically sold for multiples of 10 times EBITDA, or earnings before interest, taxes, depreciation and amortization.