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SPARTANBURG, S.C. - Advantica Restaurant Group's "crazy chicken" is about to fly the coop, leaving behind a $114 million nest egg to help feed the company's Denny's, Coco's and Carrows brands.
The debt-strapped familyrestaurant conglomerate has earmarked cash from the sale of its 274-unit El Polio Loco grilled-chicken chain to upgrades of Advantica's three remaining chains.
Advantica agreed this month to sell the quick-service, Mexican-style chicken brand for $128 million, including $14 million in assumed debt, to a New York-based investment firm, American Securities Capital Partners L.P. The deal is expected to close next month.
American's only other foodservice holding is a minority stake in a 132-unit Burger King franchise in Puerto Rico.
Irvine, Calif.-based El Pollo Loco last year reported systemwide sales of $245 million and $21 million in earnings before taxes, depreciation and amortization. El Polio Loco said its per-transaction sales average was $6.94 in 1998, when its average restaurant had sales of $1.2 million.
Currently comprising 115 Advantica-owned branches, 155 franchised locations and four licensed foreign sites, El Polio Loco operates domestically in California, Arizona, Nevada and Texas. An estimated 87 percent of its units are in California. Licensees operate two units in the Philippines and two in Malaysia, El Polio Loco spokeswoman Julie Weeks said.
The sale ends a 16-year relationship between Denny's and El Polio Loco, Spanish for "the crazy chicken." Denny's Inc., which later was acquired by the corporate predecessor of Advantica, bought El Polio Loco's worldwide rights outside of Mexico in 1983, after the Mexican-based chicken system had exported 17 restaurants to Southern California.
Featuring citrus- and-herb marinated half chickens that are grilled over open flames and sold in pieces with tortillas, salsa and various side orders, the El Polio Loco concept was...