Nothing Bundt Cakes, the fast-growing, Dallas-based chain that turned a niche treat in a billion-dollar business, is being sold to the private-equity firm KKR.
The Wall Street Journal listed the valuation of the 700-unit chain at $2 billion. A source has confirmed the deal to Restaurant Business.
The deal represents a rare exit for the private-equity firm Roark Capital, which has been shopping the chain since last year. Roark, which traditionally buys and holds its acquisitions, acquired Nothing Bundt Cakes in 2021.
Dena Tripp and Debbie Schetz founded the concept in 1997 in Las Vegas based on the bundt cake, which itself is based on a German cake called the Gugelhopf. The brand sells a selection of bundt cakes in a variety of flavors. It comes in 8- and 10-inch sizes as well as miniature “Bundtlets.”
Nothing Bundt Cakes grew to 390 locations when Roark acquired the chain in 2021. The chain is mostly franchised. At the end of 2024 the chain operated 643 locations, up nearly 19% compared with the previous year, and meaning the brand has nearly doubled since Roark’s acquisition. A typical location makes about $1.4 million in revenue per year, according to Restaurant Business sister company Technomic.
Neither Roark nor KKR would comment on the acquisition.
This is the latest in a series of deals for franchised companies, which are attractive to private equity and other investors for their low capital costs and steady income stream from royalties paid by franchisees.
In recent years, companies like Tropical Smoothie Café, Jersey Mike’s, Playa Bowls, Denny’s and Subway have been sold, sometimes at high valuations.
Roark in particular has been active of late. It acquired Subway, for instance, and is considering an IPO of Arby’s-owner Inspire Brands. It also acquired the fast-growing hot chicken chain Dave’s Hot Chicken for a reported valuation of $1 billion.
Lisa Jennings contributed to this report.
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