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

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]

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