Butterfly Equity secures US$527M continuation fund to drive Qdoba’s growth

NORTH AMERICA – Butterfly Equity, the private equity owner of Qdoba, announced on August 5, the closing of a US$527 million single-asset continuation fund aimed at supporting the expansion of the franchised Mexican fast-casual chain.

The fundraising round was led by Apollo S3, a subsidiary of Apollo Global Management, which had previously owned Qdoba until selling it to Butterfly in 2022.

The deal attracted commitments from both new and existing investors, including Painswick Capital, a specialist single-asset continuation vehicle firm.

According to Butterfly Equity’s announcement, this continuation fund offers an attractive liquidity option for Qdoba’s current investors, strengthens the company’s capital structure, and provides the financial runway necessary to pursue its next phase of growth and value creation.

Butterfly has executed several transformative initiatives since acquiring Qdoba, including shifting the brand from a company-operated to a franchise-first model and accelerating new restaurant development momentum.

Qdoba currently operates over 800 locations across North America and generates close to US$1.3 billion in systemwide sales.

The chain has a robust pipeline with more than 500 restaurants in various development stages and aims to double its system sales over the next five years.

CEO John Cywinski expressed confidence in the brand’s trajectory, highlighting mid-single-digit same-store sales growth in recent years and an expected annual unit growth rate of approximately 10 percent.

Steve Lessar, Apollo partner and co-head of S3, commented on the partnership, praising Butterfly’s progress in positioning Qdoba for sustained growth.

He noted that Apollo’s broad platform enabled them to execute creative transactions like this continuation fund, reinforcing confidence in Qdoba’s performance and future prospects.

Butterfly co-founder and co-CEO Adam Waglay stated, “Mexican fast casual remains one of the highest-growth restaurant categories, and we are excited to continue backing the category-leading franchisor for years to come.”

The fund’s closing marks Butterfly’s first continuation vehicle and underscores its innovative approach to providing liquidity to investors while supporting portfolio growth.

Overall, this sizeable US$527 million capital infusion solidifies Qdoba’s position as a leader in the Mexican fast-casual segment and underpins Butterfly Equity’s commitment to accelerating the brand’s expansion and operational success in the competitive restaurant sector.

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