QDOBA Receives $527M Investment to Fuel Major Expansion

QDOBA has secured a $527 million investment to support its rapid expansion. Led by Apollo Global Management’s Sponsor and Secondary Solutions (Apollo S3), the funding comes through a continuation fund, enabling early investors to exit while providing new capital for future growth.

Butterfly, the private equity firm that owns QDOBA, received backing from existing investors like Painswick Capital and new partners to help scale the fast-casual brand. Apollo, which previously owned QDOBA, has returned as a lead investor in this new phase.

Plans to Double by 2032

Currently operating more than 800 restaurants, QDOBA projects reaching over 1,600 units by 2032. Systemwide sales are expected to double in the next five years. The brand is focused on expansion across 10 key states, including:

  • Florida

  • Texas

  • Utah

  • Arizona

  • New Mexico

  • California

  • Georgia

  • Alabama

  • Louisiana

  • Tennessee

QDOBA has already signed nearly 20 new franchise partners over the past two years. The chain continues to grow with a pipeline of more than 500 new restaurants.

Strong Growth Metrics

In each of the last three years, QDOBA has achieved mid-single-digit same-store sales growth. It also expects 10% annual unit growth moving forward. Approximately 80% of its current locations are franchised, aligning with its recent shift to a franchise-first model.

Here’s a look at its unit growth since 2021:

Year Unit Count Change
2021 –2
2022 –6
2023 +14
2024 +30

Leadership and Strategic Vision

CEO John Cywinski, who joined in 2023 after leading Applebee’s, described QDOBA as the “best-kept secret in the restaurant industry.” Since Butterfly’s 2022 acquisition, QDOBA has brought in a new executive team and focused on asset-light growth through franchising.

“We’re proud of QDOBA’s achievements and excited to double down on our partnership,” said Butterfly co-founder and co-CEO Adam Waglay. “Mexican fast-casual remains one of the highest growth categories in the restaurant space.”

Market Position and Future Potential

QDOBA is now the third-largest Mexican QSR in the U.S., trailing only Taco Bell and Chipotle. In the latest QSR 50 ranking, the brand earned $1.2 billion in U.S. systemwide sales, with an impressive average unit volume (AUV) of $1.7 million.

As it approaches its next growth chapter, QDOBA appears well-positioned to become a national powerhouse in fast-casual dining.