Nothing Bundt Cakes Acquisition: KKR Strikes $2B Deal With Roark Capital

Private equity firm KKR is nearing an agreement to acquire bakery franchise Nothing Bundt Cakes from Roark Capital for more than $2 billion, including debt, according to multiple reports.

The transaction, first reported by The Wall Street Journal and later confirmed by Reuters, marks another major move in the restaurant and franchise investment space as private equity firms continue to target brands with strong unit economics and scalable franchise systems.

Company background

Founded in 1997 by Debbie Shwetz and Dena Tripp, Nothing Bundt Cakes has grown from a small, homegrown concept into a major player in the specialty dessert category. The brand reached 700 bakeries in 2025, up from about 390 bakeries when Roark acquired it in 2021. Much of that growth has been driven by franchisees, who own and operate most of the system’s locations. In 2024 alone, the company added more than 100 new locations.

Today, the brand is known for its focused product lineup, including full-size cakes and Bundtlets, as well as flavors such as red velvet, confetti and banana pudding.

Roark oversaw a period of significant expansion and remains one of the most active investors in franchise and restaurant businesses, with holdings that include Subway, Dave’s Hot Chicken and Inspire Brands, the parent company of Jimmy John’s, Arby’s and Dunkin’.

Financial performance

Nothing Bundt Cakes’ performance has also helped make it an attractive target. According to recent reporting, locations open at least two years average about $1.4 million in annual sales, a level of unit performance that continues to attract both franchisees and investors.

Recent restaurant deals suggest buyers are still willing to pay for brands with room to grow. Sycamore Partners bought Playa Bowls in late 2024, the same year Blackstone made its move on Jersey Mike’s Subs. Nothing Bundt Cakes fits that same pattern. Its franchise model gives investors a brand with an established footprint and a business that can keep expanding without taking on all of the cost at the corporate level.

KKR has historically been less active in restaurant investments but has made selective moves, including a 2024 investment in cloud kitchen platform Rebel Foods.