Dine Brands is getting its third concept. The owner of Applebee’s and IHOP agreed to acquire Fuzzy’s Taco Shop from NRD Holding Co. for $80 million in cash. The fast-casual Mexican chain was founded in Fort Worth, Tex., in 2003 and is on pace to generate $230 million in system sales this year. That’s up 8% from 2021. Same-store sales for the brand are up 3% through October this year. 

Franchisees operate 98% of the chain’s 138 locations in 18 states. and it had $1.5 million average unit volumes last year. Dine Brands says Fuzzy’s Taco Shop has deals in place that would double its current unit count. 

The deal comes 15 years after the company was created when IHOP acquired Applebee’s for $1.9 billion  and a plan to refranchise the entire concept. It will get a brand with a broad menu of Mexican items with a “Baja twist,” including breakfast, burritos, salads, quesadillas and beverages. It also serves alcohol, including margaritas and beer.