Roark Capital Plans Sale of Nothing Bundt Cakes — Valuation Could Exceed $2 Billion
New York / Dallas, October 29, 2025 – Private equity firm Roark Capital is exploring the sale of the U.S. bakery chain Nothing Bundt Cakes, which could value the company at over $2 billion, according to sources familiar with the matter.
North Point and Bank of America have been hired to manage the sale process, which is expected to launch in early 2026, the sources said.
Rapid Expansion Since Acquisition
Roark Capital acquired Nothing Bundt Cakes in 2021 from Levine Leichtman Capital Partners, when the company operated around 390 locations.
Since then, the brand has expanded to approximately 700 bakeries across more than 40 U.S. states and Canada — a mix of company-owned and franchised stores.
The Dallas-based dessert chain is forecast to generate about $120 million in EBITDA for 2026, implying a valuation multiple of over 16× EBITDA.
This strong valuation reflects the company’s robust growth, premium brand positioning, and proven franchise scalability within the specialty dessert segment.
A Success Story in the Franchise Bakery Market
Founded in 1997, Nothing Bundt Cakes has built a loyal following with its handcrafted bundt cakes, available in multiple flavors and sizes.
Its appeal lies in combining premium artisanal presentation with consistent franchise operations, catering to both gift-giving and everyday indulgence occasions.
Private equity firms have shown growing interest in the franchised food and bakery space, attracted by its stable cash flows and expansion potential.
Roark Capital, based in Atlanta, Georgia, has been a key player in this segment, with notable acquisitions including:
- Subway (2023) – the world’s largest sandwich chain
- Dave’s Hot Chicken (2025) – one of the fastest-growing fast-casual brands
Meanwhile, Blackstone’s 2024 acquisition of Jersey Mike’s Subs for around $8 billion illustrates the strong investor appetite for established franchise platforms.
Market Context & Outlook
With $41 billion in assets under management, Roark Capital is among the most active investors in the U.S. restaurant and franchise market.
The potential sale of Nothing Bundt Cakes is expected to draw interest from both strategic buyers in the food sector and global private equity firms seeking branded consumer assets.
Despite inflationary pressures and tighter household budgets, consumer demand for premium bakery and dessert experiences remains resilient, particularly in the gifting and celebratory segment, where Nothing Bundt Cakes has a dominant market position.
Sources: Reuters (Abigail Summerville, Oct 29, 2025), Company data, Market intelligence reports
