The Sandy Springs company that operates nearly 400 Burger King restaurants across 12 states may soon hand control to its creditors, even as the Burger King brand posts its strongest sales growth in years.
GPS Hospitality, headquartered at 2100 Riveredge Pkwy. in Sandy Springs, was downgraded to "selective default" by S&P Global Ratings in February after missing interest payments originally due in August 2025 and February 2026. In May, financial news service Debtwire reported that the company was negotiating an out-of-court deal that would transfer substantial ownership to bondholders.
The restructuring talks cited operating difficulties, heavy debt and a high interest burden.
GPS has not publicly commented on the restructuring. The company's current status, nearly three months after the Debtwire report, is unknown.
A rapid fall
Founded in 2012 by CEO Tom Garrett, GPS Hospitality grew from 42 metro Atlanta Burger Kings into one of the chain's largest franchisees. The company reported $678 million in sales across 412 Burger Kings, 62 Pizza Huts and 19 Popeyes in 2022, according to Franchise Times. In December 2023, Burger King named GPS its Developer of the Year.
Speaking to Franchise Times in early 2024, Garrett described the brand's direction optimistically: "Starting in late 2022, there's been a very definite change in direction from the brand, really starting at the leadership level."
Less than two years later, the company was in selective default.
Burger King's national surge
The contrast between GPS's financial distress and Burger King's national performance is stark. Restaurant Brands International reported Aug. 6 that Burger King U.S. comparable sales jumped 8.5% in the second quarter of 2026, up from 1.5% growth a year earlier. The chain has reclaimed the No. 2 spot among U.S. burger chains, passing Wendy's in domestic sales over the 12 months ending June 30.
RBI's "Reclaim the Flame" plan is investing up to $700 million through 2028 in restaurant remodels, kitchen upgrades and advertising. GPS participated heavily in that effort, remodeling nearly 200 restaurants and building almost 50 new ones. Its showcase project, a 60-seat "Sizzle" prototype Burger King in Dunwoody, opened in August 2024 with ordering kiosks, dual drive-through lanes and a dedicated mobile pickup area.
Local stakes
GPS Hospitality's Georgia locations include restaurants in Alpharetta, Cumming, Buford and Dunwoody. Neither the S&P downgrade nor the Debtwire restructuring report identified any North Atlanta locations for closure, according to North Atlanta Star reporting published Aug. 17.
The company's LinkedIn profile lists more than 10,000 employees across its portfolio, though that figure has not been independently verified for 2026. How many work at the Sandy Springs headquarters or in Georgia restaurants is unclear.
Ownership changes at franchisees of this size can mean corporate layoffs, leadership turnover and shifts in how aggressively locations are maintained and remodeled.
For now, the Dunwoody flagship and GPS's other local Burger Kings remain open. What happens next depends on negotiations that have been underway since at least May, with no public timeline for resolution.
