Roark’s Inspire Brands to acquire Jimmy John’s amid a fast-food boom for PE

Last year, Roark added Sonic to the Inspire Brands portfolio in a $2.3 billion deal, and a month later, the Atlanta-based firm raised a total of $6.5 billion for a new flagship fund and a related sidecar vehicle. Roark’s restaurant holdings also extend far beyond Inspire Brands. The firm paid $200 million for Jamba Juice[10] in 2018, and it has held stakes in Auntie Anne’s[11], Carvel[12] and Wingstop[13]

The firm’s new move on Jimmy John’s reflects a broader trend: private equity is hungry for fast food. Through the first nine months of this year, private equity deal value in the fast food sector is approaching $5.35 billion, per PitchBook data. For all of 2012, that figure was just $3.17 billion. One of the largest deals this year was the $740 million take-private buyout of Bojangles[14]‘, a beloved Southern fried chicken purveyor that was acquired by Durational Capital Management[15] and The Jordan Company[16]

Roark’s efforts to build out the Inspire Brands portfolio aren’t the only recent instances of fast-food consolidation supported by private equity. 3G Capital[17] and its Restaurant Brands International[18] present another example of a firm creating a conglomerate of chains. Formed in 2014, RBI now rakes in more than $32 billion[19] in annual sales from its subsidiaries: Burger King, Popeyes[20] and Tim Hortons[21]

Featured Image via Kristina D.C. Hoeppner[22]/CC by 2.0
 

Related read: Roark Capital, where Ayn Rand meets Arby’s[23]

References

  1. ^ Jimmy John’s (pitchbook.com)
  2. ^ Inspire Brands (pitchbook.com)
  3. ^ Sonic Drive-In (pitchbook.com)
  4. ^ Rusty Taco (pitchbook.com)
  5. ^ Buffalo Wild Wings (pitchbook.com)
  6. ^ Roark Capital Group (pitchbook.com)
  7. ^ Weston Presidio (pitchbook.com)
  8. ^ a special appetite for franchise models (pitchbook.com)
  9. ^ US Franchise Systems (pitchbook.com)
  10. ^ Jamba Juice (pitchbook.com)
  11. ^ Auntie Anne’s (pitchbook.com)
  12. ^ Carvel (pitchbook.com)
  13. ^ Wingstop (pitchbook.com)
  14. ^ Bojangles (pitchbook.com)
  15. ^ Durational Capital Management (pitchbook.com)
  16. ^ The Jordan Company (pitchbook.com)
  17. ^ 3G Capital (pitchbook.com)
  18. ^ Restaurant Brands International (pitchbook.com)
  19. ^ RBI now rakes in more than $32 billion (pitchbook.com)
  20. ^ Popeyes (pitchbook.com)
  21. ^ Tim Hortons (pitchbook.com)
  22. ^ Kristina D.C. Hoeppner (www.flickr.com)
  23. ^ Roark Capital, where Ayn Rand meets Arby’s (pitchbook.com)
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