Five Guys Secures £185m Refinance Deal to Power UK and European Expansion

In a bold move amid economic headwinds for the hospitality sector, premium burger chain Five Guys has finalised a £185 million refinancing agreement aimed at accelerating its expansion across the UK and mainland Europe. The deal, backed by a consortium of high-street and investment banks, comes as the brand signals its aggressive growth ambitions in both established and emerging markets.

The newly secured debt facility, locked in until 2030, underscores investor confidence in Five Guys’ operational performance and brand strength. John Eckbert, Chief Executive of Five Guys Europe, described the transaction as “a significant accomplishment,” highlighting that the refinancing was obtained at a more favourable rate despite a challenging macroeconomic climate.

“This £185m refinance transaction is a testament to the strength of the Five Guys brand and our successful operational performance,” said Eckbert. “The capital injection will be instrumental in accelerating our expansion strategy, allowing us to serve even more hungry customers with our fresh and fully customisable burgers and fries.”

The funds will be channelled into opening new restaurants across the UK, France, Germany and Spain, with a particular emphasis on launching more drive-thru locations—an increasingly strategic format as consumer demand for speed and convenience grows. The move also supports Five Guys’ plan to expand its estate footprint at key transportation hubs, as evidenced by its upcoming 90-cover location at Heathrow Terminal 5—its first in a UK or European airport.

The financing deal arrives on the back of positive financial momentum. In its latest financial year ending 31 December 2023, Five Guys’ European arm reported a revenue increase of more than £90 million, rising from £452.3m in 2022 to £542.9m. UK revenues alone climbed from £278.6m to £316.4m. Despite ongoing investment in expansion, the business reduced its pre-tax losses from £35.6 million to £16.2 million during the same period.

Established in 1986 by the Murrell family in Arlington, Virginia, Five Guys launched in the UK in 2013 with its inaugural site in London’s Covent Garden. Today, the brand boasts nearly 180 restaurants in the UK and operates under the same corporate structure across France, Germany and Spain, employing approximately 9,000 staff across its European operations. The business is a 50:50 joint venture between Freston Ventures, an investment vehicle of Carphone Warehouse co-founder Sir Charles Dunstone, and the Murrell family.

The refinancing comes at a time when many hospitality operators are grappling with mounting financial pressures, including rising staffing costs and the repercussions of recent tax increases introduced in the autumn budget by Chancellor Rachel Reeves. With several high-profile restaurant groups—such as Côte—exploring urgent sale processes to secure liquidity, Five Guys’ ability to draw long-term backing is seen as a significant advantage in a volatile market.

While some competitors retreat, Five Guys appears poised to expand. The decision to relocate its existing restaurant within Westfield London to a larger unit further signals its optimism and ongoing investment in high-footfall locations.

This refinancing marks more than a financial manoeuvre; it reflects Five Guys’ broader confidence in its business model and market position. As the hospitality industry confronts inflationary pressures and changing consumer expectations, the brand’s blend of premium positioning, operational consistency, and agile growth strategy may well offer a blueprint for success in turbulent times.