Nothing Bundt Cakes Acquired by Private Equity Firm for $2B-Plus

U.S. private ⁠equity ⁠firm KKR has signed a deal to acquire the bakery chain Nothing Bundt Cakes for over $2 billion, Reuters reported Wednesday. Nothing Bundt Cakes is currently owned by Roark Capital. The fast-growing, Dallas-based chain — made up of mostly franchises — was founded by Dena Tripp and Debbie Schetz in 1997, and sells a variety of Bundt cakes. It was acquired by Roark in 2021, and Restaurant Business Online reported Roark had been shopping the chain around since last year.

Total Retail's Take: Nothing Bundt Cakes is likely appealing to KKR for several reasons: it provides recurring demand cycles (e.g., birthdays, holidays, celebrations); offers simple, focused product assortments; has franchise scalability; and has strong unit economics at the store level.

Furthermore, we're seeing an increasing number of private equity firms investing in restaurants. The Wall Street Journal's Lauren Thomas reported that private-equity firm Sycamore Partners in late 2024 acquired Playa Bowls. Blackstone also that year struck a big deal for Jersey Mike’s Subs. Denny’s, a casual diner chain, was taken private at the end of last year.