Smashburger, the rapidly expanding better burger restaurant concept, today announced that it has closed on a $35 million round of financing with Golub Capital. The company intends to use the line of credit to finance its ongoing growth plans, which include anticipated 30% new unit growth for 2013. Smashburger expects to open 50 to 60 company and franchise locations this year, ending the year at close to 250 locations and 300+ units by the end of 2014.
“At just over 200 locations today, we see significant runway for growth across the United States and internationally,” commented Dave Prokupek, chairman and chief executive officer for Smashburger. “We are very pleased to partner with Golub Capital to access additional financing that will assist us in executing on our growth plans going forward. The team at Golub shares our belief in the growth opportunity for Smashburger and we look forward to continuing the process of establishing Smashburger as the leading better burger concept globally.”
Smashburger was launched in 2007 with an initial investment from concept development firm Consumer Capital Partners, which has continued to invest in the company over the years. In addition to the planned openings for this year, the company has agreements for over 250 franchise locations in the pipeline that are expected to open over the next several years, across the U.S. and internationally. The company continues to seek qualified franchise partners to expand the brand into target markets, including Canada, the United Kingdom and Australia.
“We have known the Smashburger team for several years and believe the company is well positioned to become the industry leader in the better burger category and in the fast casual sector overall,” commented Charles Riceman, managing director at Golub Capital. “We were impressed with Smashburger’s industry leading franchisees, as well as the company’s execution on its business goals to date and we look forward to being a part of the company’s success going forward.”