KKR is set to acquire the American bakery brand Nothing Bundt Cakes from Roark Capital in a deal valued at more than $2 billion, including debt, according to a report by the Wall Street Journal citing unnamed sources familiar with the transaction.
Founded in 1997 by two mothers, Nothing Bundt Cakes has grown into a national chain offering customisable Bundt cakes in various sizes and flavours, from red velvet to confetti and banana pudding. The brand operates primarily through franchising, a model that appeals to private equity due to its predictable cash flow.
Roark Capital, which acquired the Dallas-based chain in 2021, has built a broad portfolio in the restaurant sector, including Dave’s Hot Chicken, Subway, and Inspire Brands – the parent company of Dunkin’, Jimmy John’s, and Arby’s.
KKR has historically been less active in the restaurant space, though it did invest in India’s cloud-kitchen platform Rebel Foods in 2024.
