QDOBA Receives $527 Million Investment to Keep Expanding

The fast casual hopes to reach more than 1,600 locations by 2032.

Source: QSR Magazine

QDOBA owner Butterfly has raised $527 million to keep investing in the quickly expanding fast casual.

Apollo Global Management’s Sponsor and Secondary Solutions business (Apollo S3) led the investment, with support from both new and existing investors, including Painswick Capital. This investment, called a continuation fund, gives early investors a chance to cash out, while also setting QDOBA up with more money to keep expanding. Apollo previously owned QDOBA before selling it to Butterfly three years ago.

The Mexican giant has over 800 restaurants and makes nearly $1.3 billion in total sales across its system. The fast casual believes it’s on track to reach over 1,600 locations by 2032 and for its system sales to double in the next five years. The brand is currently working through a pipeline of more than 500 restaurants and is actively pursuing growth in states like Florida, Texas, Utah, Arizona, New Mexico, California, Georgia, Alabama, Louisiana, and Tennessee.

QDOBA, operating in 45 states, has welcomed nearly 20 new franchise partners in the past two years. It has also experienced mid-single-digit same-store sales growth in each of the past three years and is projecting 10 percent unit growth annually.

Here’s a look at how QDOBA has grown since 2021 (fiscal years run from October to October)

CEO John Cywinski joined the company in 2023 after serving as president of Applebee’s. He described QDOBA as the “best-kept secret in the restaurant industry.”

“I honestly can’t think of a better partner than Butterfly to help us unlock our full potential,” Cywinski said in a statement.

Since acquiring QDOBA in 2022, Butterfly has hired a new executive team, shifted to a franchise-first model, and reignited new unit development, positioning the company as an asset-light, high-growth operator.

“We are proud of the success that QDOBA has achieved since our original investment, but we are even more thrilled to double down on our partnership with John and his incredible team as they embark on this next stage of growth,” Adam Waglay, cofounder and co-CEO of Butterfly, said in a statement. “Mexican fast-casual remains one of the highest growth and most attractive categories within the broader restaurant sector, and we are excited to continue backing the category-leading franchisor for years to come.”

QDOBA ranked No. 38 on this year’s QSR 50 report, earning $1.2 billion in U.S. systemwide sales. It also posted a $1.7 million AUV. It is the third-largest QSR Mexican chain in America, following Taco Bell and Chipotle. Approximately 80 percent of its units are franchised.