Roark exploring $2B-plus sale of Nothing Bundt Cakes brand

Roark Capital has begun preparations to market a sale of bakery chain Nothing Bundt Cakes, with sources indicating the process could value the business at more than $2 billion. The firm has tapped advisers to run a formal auction, which people familiar with the matter say is likely to start in the coming months.

Advisory mandates have reportedly been given to North Point and Bank of America. The company is said to be tracking roughly $120 million of EBITDA for this year, an operating metric that underpins buyer interest and supports the headline valuation cited by the sources.

Founded in 1997, Nothing Bundt Cakes has expanded rapidly since its previous private equity change of hands. Roark Capital acquired the chain in 2021 from Levine Leichtman Capital Partners (LLCP) when the brand operated about 390 stores; it now runs roughly 700 locations across more than 40 U.S. states and Canada, a mix of company-owned outlets and franchised units.

At an implied valuation of roughly $2 billion, the deal would equate to an EV/EBITDA multiple near 17x using the projected 2026 figure — a rich multiple for a foodservice asset but within range for fast-growing franchised concepts with strong unit economics and recurring royalty income. For context, large franchise-focused transactions in recent years have attracted strategic and private-capital bidders willing to pay premiums for scale, predictable cash flows and expansion runway.

Roark, an Atlanta-based buyer with strong exposure to franchised restaurants and consumer brands, manages about $41 billion in assets and has been active in the sector, completing notable deals including the acquisition of Subway in 2023 and investments in faster-casual concepts more recently. The interest in Nothing Bundt Cakes highlights continued appetite from both strategic acquirers and private equity firms for differentiated franchise platforms.