PHOENIX, AZ ( 4 September 2013) Cave Creek Capital Management is pleased to announce its investment in QK Holdings LLC, the largest Denny’s franchisee in the United States. QK operates 84 Denny’s and DelTaco restaurants in Arizona, Colorado, New Mexico, Oregon, Texas and Utah generating over $100 million in annual revenues.
Doug Koch, President of QK Holdings, said, “We are looking forward to growing even faster with the strategic guidance and additional capital from our new partners. They structured a deal which met our needs perfectly”. CCCM’s transaction funded both growth capital and personal liquidity for the Founders who maintain a majority interest in the Company. Robbie Qualls, Doug Koch and Dennis Ekstrom will continue as Chairman, CEO and COO of the Company. Kevin Fechtmeyer, Managing Partner of CCCM, noted “QK is a classic example of our investment approach; pick strong operators who don’t necessarily need to sell but would like an institutional partner to fund growth, cash out some of the shareholders and leave the management team with an even larger equity upside in the future.”
Co-investors included Stewart Capital of Stilwell, Kansas and Seacoast Capital, an SBIC based in San Francisco and Boston. The senior lenders in the transaction included lead agent, GE Capital, National Bank of Arizona and Alliance Bank of Arizona.
Dennys Corp.
Denny’s Corp (NASDAQ: DENN) is a leading national franchised chain of family restaurants with nearly 1,700 locations worldwide. Founded in 1953, Denny’s has built a strong brand with its America’s Diner theme and its Grand Slam ™ and $2-$4-$6-$8 Breakfast, lunch and dinner specials.
DelTaco Corp.
DelTaco is a national quick service restaurant (“QSR”) chain offering freshly prepared, value for the money Mexican and American favorites. The Company, founded in 1964, is based in Lake Forest, CA and has grown rapidly to over 500 locations in 16 states becoming the second largest Mexican QSR concept in the U.S.
Cave Creek Capital Management LLC
Cave Creek Capital, based in Phoenix, AZ, is a growth investor with the flexibility of a family office, the talent of a major firm and a much wider range of capital solutions than traditional Private Equity funds. Cave Creek Capital does not require control and can invest in both equity and debt. With no structural deadlines, we can be patient investors and focus on long term goals. This enables Cave Creek Capital’s management partners to achieve leadership in their markets and generate exceptional growth and returns.
For more information, please contact:
G. Kevin Fechtmeyer
Managing Partner
Cave Creek Capital Management LLC
2355 E Camelback Rd Suite 510
Phoenix, AZ 85016
480-478-6960
[email protected]
