Dallas‑based private‑equity firm Altamont Capital has exited its stake in Texas comfort‑food chain Cotton Patch Café, selling the 46‑unit operator to fellow Dallas platform Local Favorite Restaurants. The acquisition adds a regional brand with locations in Texas and New Mexico to Local Favorite’s growing portfolio of locally‑focused eateries. Financial terms were not disclosed.

Founded in 1989 by Larry Marshall and Michael Patranella, Cotton Patch built a reputation for hearty Southern fare, appealing to families and retirees across the Southwest. CEO Brandon Coleman III, who took the helm last year, will continue to run day‑to‑day operations under the new ownership, preserving the brand’s menu consistency.

The deal expands Local Favorite’s footprint in the high‑growth Texas casual‑dining market, where consumer spending on comfort food remains resilient despite broader economic headwinds. By integrating Cotton Patch’s supply chain and real‑estate assets, the platform aims to drive cost efficiencies and accelerate same‑store sales across its combined restaurant base.

Investors will watch how Local Favorite leverages the acquisition to boost EBITDA margins, a metric often scrutinized in private‑equity exits. The absence of disclosed price leaves valuation benchmarks ambiguous, but the transaction signals confidence in regional dining concepts as a defensive play amid volatile consumer trends.