Green Burrito Is Primed for Steakhouse Acquisitions

If history is any indication--and with William P. Foley II, it is--expect to see a spate of steakhouse acquisitions from Irvine-based Green Burrito in the months ahead.

Foley, who first made his fortune in the title insurance business, is an entrepreneur who lives to do deals. His modus operandi: Buy underperforming companies, reduce or replace management, keep a lid on expenses and focus on narrow but profitable niches.

It’s a strategy he used to quickly build Irvine-based Fidelity National Financial into the nation’s fourth-largest title insurer by buying up the likes of competitors such as American, Meridian, Security and Western title companies.

And in only three years at the helm of Carl’s Jr. parent CKE Enterprises Inc. of Anaheim, Foley has turned that once-struggling burger chain into the nation’s fourth-largest with daring acquisitions such as the $327-million purchase of 800-unit-plus Hardee’s chain.

Green Burrito CEO Andrew F. Puzder says Foley will use Green Burrito parent GB Foods Corp. as “the consolidator” of the steakhouse industry.

Within hours of announcing a deal this month to buy the 16-unit Timber Lodge Steakhouse chain in Minnesota for about $30 million, a restaurant broker was on the phone trying to sell Foley an 80-unit steakhouse chain. And in the week since, two other chains have approached Foley about being acquired.