Fast-growing pizza chain MOD Pizza on Tuesday said that it has raised another $160 million, in a financing round led by Clayton, Dubilier & Rice (CD&R).
The equity injection, which brings the Seattle-based company’s total fundraising to $339 million, will help the chain grow to about 1,000 locations over the next five years—more than double its current size of 433 locations.
Scott Svenson, MOD’s co-founder and CEO, called the deal “further validation of our belief that profit and positive social impact can coexist. We are incredibly energized by the opportunity to work with CD&R to scale the MOD brand, while continuing to build our people-first, purpose-driven culture.”
MOD Pizza, a fast-casual pizza chain founded by Scott and Ally Svenson 11 years ago, has become one of the fastest-growing chains in the U.S.
U.S. system sales grew 45% last year, according to data from Restaurant Business sister company Technomic. System sales at the chain have more than quintupled since 2015, to nearly $400 million from $65 million.
The company said that same-store sales rose 3.1% last year.
CD&R led the fundraising round. Current MOD investor Fidelity Management & Research Co. also participated.
As part of the deal, Ken Giuriceo, CD&R partner, and Paul Pressler, another CD&R partner and former Gap Inc. CEO, will join MOD’s board of directors.
“MOD has clearly proven that building a business around a meaningful and authentic purpose can align and inspire the team to produce incredible results,” Giuriceo said in a statement. “The company is poised to continue its rapid growth, and we are thrilled to join their talented team of industry veterans to further develop and strengthen the MOD business and brand.”
The funds will also help MOD further accelerate its efforts to build digital ordering and off-premise channels, as well as its loyalty program, MOD Rewards. The company said that digital orders doubled over the past year.