We recently wrote about restaurant companies that could, or should, go public this year and already one of those companies, Jersey Mike’s, is laying the groundwork to do just that, according to Reuters.
But the market has been less-than-friendly to restaurants lately. A lot of companies saw their stock prices plummet, including some notable names. That has hammered valuations, enough that it has made more than a few companies ripe for potential buyers.
Indeed, absent some change in the view of restaurants by public investors in the next few months, it would seem more likely that companies go private than go public. As it is, companies like MTY Food Group are considering strategic alternatives while Pizza Hut remains on the market. Denny’s has already been taken private.
Here’s a look at some companies that would seem potential takeover targets.
Wendy’s
The company that would arguably make the biggest and most obvious potential target for an opportunistic buyer is the Dublin, Ohio-based burger chain.
Wendy’s stock lost nearly half of its value last year. The company now trades at an enterprise value multiple of around 9 to 10 times EBITDA, or earnings before interest, taxes, depreciation and amortization. Its five-year average is around 17.
Wendy’s market capitalization is $1.6 billion. It is the fifth-largest restaurant chain in the U.S. And it has a lower market cap than Shake Shack, Cheesecake Factory, Brinker International, Wingstop, Cava and Dutch Bros, all of which are smaller. It also has a smaller market cap than Arcos Dorados Holdings, McDonald’s Latin American franchisee.
Wendy’s has a big name and a good quality reputation. It may have figured out breakfast. It has white space internationally and the makings of a marketing beast, thanks to its irreverent social media account. It has decent average-unit volumes, about $2 million. It’s also a franchise. That’s a big deal when it comes to restaurant M&A.
The company has been mishandled over the past two years with reorganizations and CEO hiring misfires. It may simply opt to find a new CEO and bank on near-term sales improvement to lift its share price. But no company is as ripe for a takeover as this one.
Papa Johns
If we had a nickel for the number of times we thought Papa Johns might be acquired, we’d have a lot of money.
The private-equity firm Apollo Global Management made a big push last year to buy the chain only to pull that offer by November. But in previous years roughly every restaurant buyer has been viewed as a potential acquirer of the chain, such as the Roark Capital-owned Inspire Brands and Burger King owner Restaurant Brands International.
That it hasn’t happened despite all that interest would, on the surface, suggest that a take-private deal won’t actually happen. And that is understandable given Papa Johns' sales weakness last year and the overall problems with the pizza market.
But that many potential buyers, coupled with Papa Johns’ franchise model and its U.S. and international development potential, could ultimately make it a target at some point.
Sweetgreen
The only company that had a tougher year on Wall Street in 2025 than Sweetgreen was the we-might-go-bankrupt Fat Brands.
Sweetgreen’s stock trades at one-fourth its 2021 IPO price and its valuation is a third of what it was at the time. The fast-casual chain also struggles to generate a profit.
All of that screams “sell low,” which would not necessarily be the best idea for a company that is arguably one of the industry’s most innovative. That’s not exactly an incentive to find a buyer.
But the company’s sales really struggled last year, which has led to major questions about its status as a growth chain. Sweetgreen may need some time as a privately-held company to regain that status again.
Portillo’s
Like Sweetgreen, Portillo’s went public in 2021. And like Sweetgreen, Portillo’s had a tough 2025. Its stock lost more than half of its value as its sales slowed and questions emerged about its expansion strategy.
But the Italian beef chain has some of the strongest average unit volumes in the industry at about $9 million and a strong, loyal customer base in its hometown, all of which would certainly make it a strong target.
Like Sweetgreen, however, it’s a matter of selling low and accepting a depressed valuation when one good year can change perceptions. Also, like Sweetgreen it is a company-owned operation, which may not make it all that desirable a takeover target. Investors love franchises a lot more than they love restaurants.
El Pollo Loco
We expect something to happen with the fast-food chicken chain eventually. After all, it has received a takeover offer from Biglari Holdings, which is now raising cash by selling stock. The private-equity firm CapitalSpring is also working with the company.
The company has a good menu and sells chicken, which is popular right now. The company has a market cap of just over $300 million and an enterprise value of about $570 million and a valuation multiple of about 10. None of that would be a remote roadblock.
The company’s stock has hovered between $8 and $12 per share since late 2022 and has not done much outside of a short burst following its 2014 IPO and during the post-pandemic valuation spike. So investors might welcome some kind of exit.
The others
Meanwhile, two companies and at least one restaurant chain are already considering going private. Yum Brands wants to sell Pizza Hut, which has had problems on and off for years, particularly in the U.S. That could be a tough sell given the challenges with pizza and Pizza Hut's low unit volumes and per-store profitability.
MTY Food Group has said it is exploring a possible deal and there are some reports out of Canada of a potential bidding war for the franchise operator. Then there is Noodles & Company, which is also on the market. With a market cap of just $36 million, the fast-casual chain wouldn't require much to be taken private.