Qdoba gets new private equity investment
An expanding fast-casual Mexican restaurant chain is gaining new funding to fuel its growth.
Butterfly, a Los Angeles-based private equity firm specializing in the food and beverage sector, has announced the closing of a $527 million single-asset continuation fund to extend its partnership and accelerate the growth trajectory of Qdoba Restaurant Corporation. Butterfly acquired the chain in 2022.
The new funding includes commitments from new and existing investors, including Painswick Capital, a specialist single-asset continuation vehicle firm established in 2024 by John L. Garcia, chairman and former CEO of AEA Investors. Butterfly says the transaction provides an attractive liquidity option for Qdoba’s existing investors, strengthens Qdoba's capital structure, and provides a clear runway to achieve its next phase of growth and value creation.
“Qdoba is the best-kept secret in the restaurant industry,” said CEO John Cywinski. “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. Given this trajectory, we expect to double Qdoba system sales over the next five years, and I honestly can't think of a better partner than Butterfly to help us unlock our full potential."
Currently, Qdoba has more than 500 restaurants in development, with planned markets for expansion including the East Coast (Massachusetts and Connecticut), the Midwest (Ohio and Illinois), the Pacific Northwest and more.
[READ MORE: Qdoba exceeds 500 stores in development; to grow in Northeast, Midwest]
“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,” said Adam Waglay, co-Founder and co-CEO of Butterfly. “Mexican fast-casual remains one of the highest growth and most attractive categories within the broader restaurant sector, and we are excited to continue backing the category-leading franchisor for years to come.”
Based in San Diego, Qdoba operates more than 800 locations in the United States, Canada and Puerto Rico.
