Green Burrito to Sell Controlling Stake

Restaurant baron William P. Foley II will expand his fast-food empire by acquiring control of the Newport Beach-based Green Burrito Mexican-style chain in a transaction sources valued at about $6 million. The unexpected deal, scheduled to be completed this week, calls for Irvine-based Fidelity National Financial Inc. to acquire 1 million shares of Green Burrito operator GB Foods Corp., along with stock warrants that, if exercised, would give Fidelity National 41% of GB Foods’ shares. Foley is chairman of both Fidelity National, one of the nation’s largest title insurers, and Anaheim-based CKE Restaurants Inc., parent company of the Carl’s Jr. chain. He said the deal fits Fidelity’s strategy of diversifying into businesses that are not sensitive to interest rates. The move would also seem to benefit the Carl’s Jr. chain, which operates 63 dual-branded restaurants that serve both Carl’s Jr. and Green Burrito fare. GB Foods’ principal shareholder and chief executive, William M. Theisen, will resign, along with Chief Financial Officer George J. Kubat. CKE shares declined $1.69 to close at $33.56 on the New York Stock Exchange.