⛫ Movement in Roark Capital's Portfolio

If you’re a multi-unit franchise owner considering selling your business, reach out to my team at FD Capital for valuation & sell-side services.

Roark capital portfolio

Roark Capital began with an acquisition of Carvel in 2001, and has developed into the largest portfolio of franchise brands in the world.

In total, it spans over 110,000 locations globally, doing ~$100 billion in systemwide revenue.

The portfolio has 3x more locations than McDonald’s worldwide.

Inspire brands ipo

But…there will be some big changes coming, starting with their biggest platform, Inspire Brands.

Earlier this month, their largest platform - Inspire Brands - filed to go public.

With:

• 33,000+ locations

• $33.5 billion in systemwide sales

It’s shaping up to be massive IPO.

Dunkin' is carrying the portfolio (no surprises there), while the other brands have some question marks:

• Baskin Robbins has plateaued

• Sonic's AUVs are among the lowest in burgers

• Buffalo Wild Wings core concept hasn't seen positive growth in years - though their “Go” model is gaining traction

Regardless, this was always the plan for Inspire Brands - and I’ll be interested to see more data on these brands as the SEC filings come in. More to come here!

Driven brands sale

At the end of March it was reported an activist investor, ADW Capital, was looking to push Roark into a sale of Driven Brands.

Roark took Driven Brands public in 2021, and still owns ~61% of the stock. The activist hedge fund is offering a 40% premium to their stock price to buy the company, which forces Roark to seriously consider it.

Now, given Roark Capital recently sold Nothing Bundt Cakes for ~$2 billion, and the Inspire Brands portfolio will be going public, and a potential transaction with Driven could occur…it would represent a lot of activity for a firm that frankly doesn’t transact much.

Roark capital funds

Roark has raised 6 funds to date, starting with their 1st fund that closed in 2005 with a total of $413M raised.

From what I can gather, their most recent fund was a $4.6 billion flagship that closed in ~2022.

But as I said earlier, despite the massive ecosystem of brands they’ve invested in and/or own a majority of, there hasn’t been many exits or liquidity events.

Again, they’ve owned Carvel since 2001! Most PE firms flip their investments in 3-7 years.

I’m sure there’s continuation vehicles and other liquidity mechanisms being activated that are above my pay grade, but it’s still wild to see how long they’ve held certain investments (especially considering some of them may be past their prime).

Prior to the recent sale of Nothing Bundt Cakes, the most notable exits they’ve had were:

• Taking Wingstop public in 2015

• Selling their stake in Cheesecake Factory in 2021

• Selling FastSigns back in 2014

Maybe it’s fund-cycle pressure finally catching up (those early vehicles are two decades old now). Or maybe it’s just a coincidence of events, as Inspire in particular was always destined to go public.

Either way, given how sparse the activity has been over the years, 2026-2027 is shaping up to be the most active stretch in Roark’s history.

Founded in 2012, they made their name in Manhattan with the spicy pepperoni slice that has gone viral across the country ever since they posted it on Instagram.

Lawrence started working with the founders of Prince St in 2018, and built location #2 in Los Angeles after a pop-up event went absolutely bonkers.

> It was the craziest thing I’ve ever seen. The line went nearly a mile long

He’s been scaling methodically with a handful of corporate owned stores across markets like Tempe, Toronto, and Chicago.

He’s also franchising the concept, but very selectively.

Product craftsmanship is of the utmost importance for this brand, so it’s a very different model than a Domino’s or a Little Caesars. This is why they’re only considering the biggest and best multi-unit operators in the country.

So far, they have two franchisees - Lawrence Kourie, one of the OG Dave’s Hot Chicken operators, and Raj Patel (former guest on Empires) who owns 100+ Dunkin’s, among other brands.

Dairy Queen Adds $150k Dev Incentive The cash incentive and further rewards for multi-unit development, could help the brand grow its Grill & Chill concept.

Domino’s Robotics Partner Shuts Down Picnic, a Seattle-based startup that raised more than $53 million to develop robots capable of putting human restaurant workers out of a job, has shut down.

Portillo’s Opens 1st Airport Unit The nontraditional location signals ongoing investment in Texas, where Portillo’s had a disappointing 2025.

Wingstop Launches Loyalty Program Club Wingstop’s exclusive perks and experiences could help improve guest frequency and same-store sales growth.

Caesars Acquired by Fertitta The deal brings Caesars’ resort portfolio and digital gaming platform under the same roof as Fertitta’s Golden Nugget Hotels & Casinos and Landry’s restaurant brand.

7-Eleven Completes 204 Store Integration The locations, which the retailer bought in 2024 for $1 billion, now have 7-Eleven’s loyalty and technology platforms.