Qdoba gains a $527 million investment funding
Butterfly Equity's acquisition of Qdoba in 2022 has set the Mexican fast-casual chain on a path of aggressive growth. The brand recently closed a $527 million continuation fund, reflecting strong investor confidence in Qdoba's trajectory.
Qdoba's Growth Strategy
Under Butterfly's ownership, Qdoba has pursued a strategic shift towards becoming a high-growth, asset-light franchisor. The goal is to have around 80% of units franchised, enabling faster expansion and lower capital intensity.
New store development is a key focus, with plans to open approximately 56 new restaurants in 2025 and 75 in 2026. The pipeline exceeds 500 potential new locations, and Qdoba aims to pass the 1,000-unit mark by 2027 and reach over 1,600 by 2032.
Geographic expansion is targeted in key states such as Florida, Texas, Utah, Arizona, New Mexico, California, Georgia, Alabama, Louisiana, and Tennessee. Qdoba also seeks growth in nontraditional venues like universities, military bases, and airports.
Financial Success
Qdoba has delivered mid-single-digit comparable store sales increases for the past three years. In FY2023 and FY2024, the growth was 6.1% and 7.7% respectively, with a projected 10% annual new unit growth rate.
The brand generates nearly $1.3 billion in systemwide sales with an average unit volume (AUV) of $1.7 million. This ranks Qdoba as the third-largest Mexican quick-service restaurant chain behind Taco Bell and Chipotle.
Qdoba's Systemwide Same-Store Sales increased by 7.7% in 2024, with more than 4% from traffic.
Management and Operations
Butterfly has bolstered Qdoba's management team with key executive hires, transitioning to the franchise-first model to support scalability.
CEO John Cywinski, previously the president of Applebee's, was brought in by Butterfly in 2023. Cywinski described Qdoba as being "orphaned" under Apollo's ownership.
Investors and Legal Counsel
The fundraise was led by Apollo's Sponsor and Secondary Solutions (S3) business. Other investors include Painswick Capital and existing investors.
Kirkland & Ellis served as legal counsel to Butterfly, and Weil Gotshal served as legal advisor to Apollo S3. Evercore served as exclusive financial advisor to Butterfly.
Qdoba's Expansion into Canada and Puerto Rico
Qdoba has recently expanded into Canada and Puerto Rico, marking a significant milestone in its growth. The deal provides an attractive liquidity option for existing investors and signals a bright future for the brand.
Adam Waglay, co-founder and co-CEO of Butterfly, expressed excitement about Qdoba's growth potential in the Mexican fast casual category. With this latest fundraise, Qdoba is well-positioned to continue its expansion and cement its place as one of the fastest-growing national restaurant brands in America's Mexican fast-casual segment.
[1] Restaurant Business Online. (2025, August 31). Qdoba closes $527M fundraise to fuel growth. Retrieved from https://www.restaurantbusinessonline.com/financing/qdoba-closes-527m-fundraise-to-fuel-growth
[2] Nation's Restaurant News. (2025, September 1). Qdoba raises $527M to fund growth. Retrieved from https://www.nrn.com/financing/qdoba-raises-527m-fund-growth
[3] QSR Magazine. (2025, September 2). Qdoba plans to open 121 new restaurants in 2025 and 2026. Retrieved from https://www.qsrmagazine.com/news/qdoba-plans-open-121-new-restaurants-2025-and-2026
[4] Restaurant Dive. (2025, September 3). Qdoba aims to pass 1,000 locations by 2027. Retrieved from https://www.restaurantdive.com/news/qdoba-aims-to-pass-1000-locations-by-2027/612573/
- Qdoba's growth strategy, under Butterfly Equity's ownership, includes franchising a significant portion of its units, aiming for 80%, to foster faster expansion and lower capital intensity, making it an attractive investment opportunity in the restaurant industry through franchising.
- With the recent $527 million fundraise, Qdoba is set to continue its aggressive growth, planning to open approximately 121 new restaurants in 2025 and 2026, with the goal of passing the 1,000-unit mark by 2027, all while focusing on geographic expansion in key states and nontraditional venues, signifying robust financial returns for investors in the business sector.
