WHAT-A-CHANGE

Ken Hoffman digs into the juiciest questions after Whataburger's surprising sale

This article originally appeared on CultureMap.


The headline induced heart palpations in drive-thru burger fans across Texas and neighboring states … "Texas-based Whataburger sells to new owner amid expansion plans." While that sounds unsettling, the real concern is:

What does this mean to Whataburger's everyday (sometimes twice-a-day) customer in Texas?

In the immediate future — like tomorrow, next week, next year — probably very little. But in the long run, all bets are off. Most likely, there will be significant changes at your local Whataburger over the next three to five years.

Whataburger is now owned by a private equity company (Chicago's BDT Capital Partners), which may not know a Chop House Cheddar Burger from a Whatacatch Sandwich — and doesn't understand that when you're stuck in morning traffic on I-45, nothing beats a Honey Butter Chicken Biscuit.

That investment company bought Whataburger for only one reason: to make money. Shocking, that's what investment companies do. They are not fast food philanthropists. They're financial killers who want to see a return on their investment.

What's next?

So don't be surprised if they take Whataburger national. That's my big takeaway. It may mean Whataburger may have less Texas on its menu in the future.

The new owners are buying a very successful or stagnant company, depending on how you crunch the numbers. According to QSR Magazine, the bible of the fast food industry, Whataburger is only the No. 22 fast food chain in the U.S. — with total sales of $2.2 billion for its 821 restaurants across 10 states.

But, more important, Whataburger has the second highest sales per store, $2.7 million. That beats the average McDonald's, Taco Bell, Burger King, Wendy's, etc. — the whole bunch of national biggies. Only Chick-fil-A has higher sales per store, a printing press $4 million.

What a deal?

If Whataburger is so successful on a per-store basis, why did the owners sell? Two factors, one probably, one definitely. In Godfather terms, the investment company probably made them an offer they couldn't refuse. While Whataburger has phenomenal sales per unit, it was growing at a very slow rate — only 15 new restaurants in 2017. That same year, Chick-fil-A opened 140 new restaurants. Taco Bell opened 168 new units. Domino's expanded by 216 locations. Popeyes popped the lid on 147 places.

Continue reading on CultureMap to learn about how the rising price of beef could impact burger chains.

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Houston's magic number stays at 2

Astros drop series finale to Mariners after rough start by Greinke

Photo by Mike Stobe/Getty Images

With their magic number at 2 to secure their spot in the 2020 MLB postseason, the Astros returned to T-Mobile Park in Seattle for this three-game series' finale and rubber game. Here are the highlights from the game:

Final Score: Mariners 3, Astros 2.

Record: 28-28, second in the AL West.

Winning pitcher: Nick Margevicius (2-3, 4.57 ERA)

Losing pitcher: Zack Greinke (3-3, 4.03 ERA).

Greinke unable to complete five innings

While the Astros were being held scoreless, the Mariners were putting up runs on Zack Greinke. They took an early 1-0 lead in the bottom of the first with back-to-back singles followed by an RBI-double with one out. Greinke would stop the damage there, then looked to settle in over the next few frames.

He allowed just one baserunner in the second through fourth innings, a one-out single in the bottom of the fourth. Then, in the fifth, the Mariners would knock him out of the game by getting a one-out single that would come around to score on a two-out RBI-double, followed by an RBI-single to extend the lead to 3-0. Greinke faced one more batter, allowing a single before Dusty Baker would take the ball and move to the bullpen. His final line: 4.2 IP, 8 H, 3 R, 3 ER, 1 BB, 5 K, 0 HR, 92 P.

Astros try a late rally, come up short

On the other end, the Astros were unable to break through against Nick Margevicius, getting just one hit and two walks through the first four innings. They had a chance to get on the board in the top of the fifth, starting the inning with back-to-back singles before a walk loaded the bases with one out to turn the lineup over. They'd come up empty, though, with George Springer striking out before a long flyball to center by Jose Altuve to end the inning.

After finishing the fifth for Greinke, Andre Scrubb returned for a scoreless sixth, working around a one-out walk. Still 3-0, Blake Taylor took over on the mound in the bottom of the seventh, erasing a leadoff single and two-out walk to keep Seattle from extending their lead. Houston had another chance to score in the top of the eighth, getting two runners in scoring position, but again would strand them.

Cy Sneed was the next reliever out for the Astros, working around a two-out walk to send the game on to the ninth. The Astros would avoid the shutout, getting a two-RBI single by pinch-hitting Josh Reddick in the top of the ninth to make it a one-run game at 3-2. That's as close as they'd come, though, as the Mariners would eventually get the final out to take the series and keep the Astros' magic number stagnant at 2.


Up Next: There is one series left in the regular season for Houston, and it awaits them in Arlington with a four-game series against the Rangers, who are well eliminated from playoff contention. The first of the four games will start at 7:05 PM Central on Thursday with a pitching matchup of Lance Lynn (6-2, 2.53 ERA) for Texas and Cristian Javier (4-2, 3.33 ERA) for the Astros.

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