Qdoba Secures $527M Funding, Targets Doubling Unit Count

In a significant move, Qdoba, the Mexican fast-casual restaurant chain, has secured $527 million in funding from Los Angeles-based private equity firm Butterfly Equity. This latest round of investment builds on Butterfly's previous $305 million securitization fund for Qdoba in late 2023, following the firm's acquisition of the chain in 2022.

Since the acquisition, Qdoba has undergone several strategic changes, including the appointment of industry veteran John Cywinski as the new Chief Executive Officer. The company has also transitioned to a franchise-first model, with a goal to approximately double its unit count to reach roughly 1,500 restaurants.

Cywinski expressed his enthusiasm for the partnership, stating, "Qdoba is the best-kept secret in the restaurant industry. With mid-single digit comp sales in each of the past three years and projected 10% annual new unit growth, Qdoba is now one of the fastest growing national restaurant brands in America." He added that the company expects to double Qdoba's system sales over the next five years, with Butterfly Equity as the ideal partner to help unlock the brand's full potential.

Butterfly Equity's co-founder and co-CEO, Adam Waglay, echoed Cywinski's sentiments, saying, "We are proud of the success that Qdoba has achieved since our original investment, but we are even more thrilled to double down on our partnership with John and his incredible team as they embark on this next stage of growth." Waglay noted that the Mexican fast-casual segment remains one of the highest growth and most attractive categories within the broader restaurant sector, and Butterfly is excited to continue supporting Qdoba's expansion.