Whataburger For Sale? Company Exploring Sale, Expansion Out of State

Reuters recently broke the story that Whataburger was exploring the potential to fund an expansion by taking on a minority investor. The privately-held popular burger chain based in the Texas Hill Country then released a statement to ksat.com which read, “Our company is growing and is always attractive to investors, we constantly get inquiries. We have always evaluated the opportunities that can accelerate growth and maintain the success of our brand, and we will continue to do so in the future.” The chain has over 800 locations throughout Texas, in addition to out-of-state sites. It should come as no surprise that investors have long had a taste for getting involved in its success. In the meantime, Whataburger has retained Morgan Stanley, a multinational investment firm and finance company, to examine their opportunities.

Photo: Facebook/Whataburger

The best outcome in this instance is that Whataburger attracts the right investors to allow for an expansion that would maintain the chain’s solid Texas footprint while giving it the freedom to grow throughout the nation. Lesser-known Lone Star State fast food chains have struggled with aggressive expansion fueled by outside investors, only to see sales drop or quality decline. So it’s in the best interests of the company and its loyal Texas fan base to build a controlled expansion strategy from the ground up. This will ensure the quality of their food products never declines and the spirit of the grassroots Whataburger fan continues—as witnessed in the enormous pride they take in expressing their love.

Photo: Facebook/Minnow

According to Reuters, however, an anonymous source had claimed that the San Antonio-based chain was considering the sale of a minority stake in the company to a private equity firm or a financial investor. The business presently manages 827 locations throughout 10 states. In 2017, it ranked at number 22 out of the 50 largest such restaurants identified by QSR, a trade publication that reported its sales at more than $2.2 billion that year. Fans of the popular Texas chain will be on pins and needles, waiting to see if Whataburger can navigate a possible expansion into other parts of the U.S. without compromising the same great “made in Texas” quality we’ve come to know and love.