Sonic Sells 78 Drive-In Restaurants To Fast-Growing Franchise Operator

One of the country's largest franchise operators just added a fresh batch of Sonic restaurants spanning several states to its portfolio.

Sonic location in Richmond, Kentucky.
Kbp Brands Acquired 78 Sonic Locations In Kentucky, North Carolina, Ohio, Tennessee And Virginia.

Sonic sold 78 of its owned-and-operated locations in Kentucky, North Carolina, Ohio, Tennessee and Virginia to KBP Brands. The deal marks KBP’s second acquisition of Sonic locations in the past two years.

KBP now has 164 Sonic locations in eight states, making it the chain’s fourth-largest franchisee.

"Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," Sonic Brand President John Kelly said in a statement. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."

In addition to Sonic, KBP also operates KFC, Taco Bell and Arby's franchise locations, according to its website. It has more than 1,100 restaurants in 32 states and first entered into a partnership with Sonic’s parent company, Inspire Brands, in 2021.

That’s when KBP acquired more than 100 Arby’s locations from the company.

"We've had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase," KBP CEO Mike Kulp said in a statement. "We look forward to expanding that with a larger footprint and additional operational efficiencies."

Kulp credits KBP’s ability to integrate new locations quickly, build strong franchiser relationships, and operate data-driven restaurants with the company’s growth to around $1.5B in annual sales.

KBP’s CEO worked at Zancanelli Management when it bought its first handful of KFC restaurants in the early 2000s, QSR reported. Kulp and restaurateur Barry Dubin purchased Zancanelli’s KFC interests in 2011 and rebranded the business as KBP.

The franchise operator surpassed 100 KFC stores and $100M in sales the following year and added Taco Bell locations to its portfolio in 2019.

The Sonic acquisition comes as other fast-food chains such as Wendy's and Pizza Hut have announced plans to close locations.

Wendy's detailed plans to close more than 300 locations earlier this month, following a decline in fourth-quarter sales. The chain could close up to 360 locations during the first half of this year. It also shuttered 240 locations in 2024.

Pizza Hut's parent company, Yum Brands Inc., plans to shutter around 250 of the chain's U.S. locations this year. The move is part of a strategic reevaluation of the chain, which experienced a 1% sales decline during 2025.

Yum Brands also moved KFC's headquarters last year from Kentucky to the Dallas-Fort Worth metro.

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