Austin-based fast food chain P. Terry's Burger Stand is moving to employee ownership and creating a profit-sharing program for workers.
Kathy and Patrick Terry, the husband-wife duo who founded the chain, announced they're creating an employee ownership trust in a video on social media Tuesday. An employee ownership trust holds company shares for employees and "ensures that the company prioritizes employee benefit as part of its core purpose," according to the U.S. Department of Labor.
The move will affect 1,800 workers across 38 locations, according to a press release from Common Trust, a company that works with businesses on employee ownership models.
The profit-sharing program is open to employees who have worked at P. Terry's for at least two years. The company said eligible workers will split 5% of operating income starting this year, "with plans to increase that amount to as much as 20% over time."
"From the very beginning, we have always believed that taking care of people and building a great business are not competing ideas," Kathy Terry said in the video. "So this transition is the most honest expression of that belief we've ever made."
The Terrys said they don't have plans to leave the company. "This move is made to preserve the core values of P. Terry's for future generations," Kathy said.
P. Terry's opened its first location in Austin in 2005. The chain is known for its charitable efforts, which have spanned donating profits to help July 2025 flood victims to organizing "Giving Back Days" in support of nonprofits across Texas.
Copyright 2026 KUT News
From day one, we believed taking care of people and building a great business go hand in hand.
— P. Terry's (@pterrys) June 9, 2026
Today, we're making that belief official: P. Terry's is becoming employee-owned and launching profit sharing for eligible employees.
Here's to the next generation of P. Terry's. ❤️ pic.twitter.com/yTSbriwPWA