P. Terry's Burger Stand Moves to Employee Ownership, Adds Profit Sharing

P. Terry's Burger Stand, the Austin-based fast food chain, is shifting to employee ownership and launching a profit-sharing program for its workers, the company announced Tuesday.

Founders Kathy and Patrick Terry shared the news in a video posted on social media. They said they are creating an employee ownership trust, a structure that holds company shares on behalf of employees. According to the U.S. Department of Labor, such a trust "ensures that the company prioritizes employee benefit as part of its core purpose."

A press release from Common Trust, a company that helps businesses set up employee ownership models, said the change will affect 1,800 workers across the chain's 38 locations.

Under the profit-sharing plan, employees who have worked at P. Terry's for at least two years will be eligible. The company said those workers will divide 5% of operating income beginning this year, "with plans to increase that amount to as much as 20% over time."

In the video, Kathy Terry framed the decision as a continuation of the company's philosophy. "From the very beginning, we have always believed that taking care of people and building a great business are not competing ideas," she said. "So this transition is the most honest expression of that belief we've ever made."

The Terrys said they do not plan to leave the company. Kathy Terry said the move is intended "to preserve the core values of P. Terry's for future generations."

P. Terry's opened its first Austin location in 2005. The chain is known for charitable work, including donating profits to assist victims of the July 2025 floods and holding "Giving Back Days" to support nonprofits across Texas.

In a post on X, the company echoed the founders' message, saying it believed from the start that taking care of people and building a great business "go hand in hand," and that it was now making that belief official.