The Lone Star story began in 1950 in Dallas, Texas when S M (Merrell) Burdine, J L Ward, and their wives, Lela Burdine and Orpha Ward, opened Oak Cliff’s first donut shop. Together they and one employee, hired to cut the dough, produced 300 dozen donuts every day which were sold through a storefront and delivered fresh daily. The husbands would deliver the products while the wives operated the 600-square-foot shop on Bishop Avenue. As the number of wholesale donut deliveries increased, the business grew.
The Lone Star donut quickly became a breakfast staple in Dallas – a nickel would buy two as well as a cup of coffee. Merrell Burdine's son, C E (Gene) Burdine, merged his Sunset Donuts with Lone Star in 1955, and in 1957 Merrell acquired his partner's share of the company making it 100% Burdine owned. This year also marked the beginning of the automation of the plant. Up until that time, dough was rolled out by hand and all products were cut by hand. With the ability to produce more donuts in less time, the business grew.