The Quesarito Is Back. So Is Restaurant M&A

Author

Andy Moore
December 19, 2025

Hello!

2025 snuck in one more big M&A deal. Plus:

  • Nikola Jokić’s thoughts on the return of the Quesarito

  • A big quarter for salad and breadsticks

  • George Washington’s eggnog

3 Numbers

4.3%

Last quarter’s same-store-sales increase at Olive Garden, the latest winner in the ongoing casual dining renaissance. Parent company Darden Restaurants, which also owns Cheddar’s and LongHorn Steakhouse, among other full-service brands, could lay claim to a strong quarter overall in both revenue (net sales rose 7.3%) and profits ($237.2 million, up from $215 million a year earlier). Said CEO Rick Cardenas: “The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant sales.”

41st

Pick in the 2014 NBA draft in which future three-time MVP Nikola Jokić was selected. Discussing the biggest steal in NBA draft history is relevant to a restaurant industry newsletter, actually: ESPN aired a Taco Bell Quesarito commercial while Jokić was being drafted, and the clip resurfaces annually around draft time. Jokić later (jokingly) said he would never eat at a Taco Bell because of the snub. In bringing back the Quesarito this week, the company apologized to Jokić and invited him to try the Quesarito. His very on-brand response: “No. It’s nice they’re finally apologizing. But no.”

3.7%

Year-over-year rise in restaurant prices, according to new data by the United States Bureau of Labor Statistics. The increase outpaced general inflation numbers, which were up 2.7% versus November 2024. (Although, as many have commented, shutdown-related data noise may have played a role in the numbers.)

2 Big Stories

  1. In what’s (maybe, possibly?) the last big M&A deal of a very busy 2025, California Pizza Kitchen has reached a buyout deal, via Reuters:

An investor group led by Consortium Brand Partners is buying California Pizza Kitchen and has tapped the CEO of Convive Brands to run its restaurants, the company told Reuters on Tuesday, five years after the chain's pandemic-driven bankruptcy.

Jon Weber, chief executive officer of Convive Brands, which is part of the investor group, will also become the CEO of California Pizza Kitchen's (CPK) restaurant division. Michael Beacham, the current president of CPK, will lead the company's consumer packaged goods division, the company said in a statement reviewed by Reuters ahead of the announcement.

The news confirms Reuters' previous reporting that a deal had been reached to sell the iconic pizza chain after successfully bouncing back from its 2020 Chapter 11 bankruptcy. Billionaire Todd Boehly's investment firm Eldridge Industries, the credit arm of private equity firm Bain Capital, and Aurify Brands are part of the investor group. The transaction, the terms of which were not disclosed, is set to close later this month.

The restaurant, which was founded 40 years ago in Beverly Hills and has over 120 locations globally, generates annual revenue of close to $1 billion. Reuters reported last month that CPK was nearing a deal with the investor group for under $300 million.

The investors’ plan post-acquisition is to open more CPK outlets in both the US and internationally (via franchise partners) and to sell more BBQ chicken pizzas in grocery stores under its preexisting CPG program.

Interestingly, this is the first restaurant investment for Consortium Brand Partners — which owns activewear brand Outdoor Voices, the home decor company Jonathan Adler, and Reese Witherspoon-founded Draper James — all of which may point to an especially strong focus on the retail business for CPK moving forward.

  1. Krispy Kreme is selling its Japan business to private equity fund Unison Capital for $65 million in cash, via Restaurant Business:

The Charlotte-based doughnut chain said that funds from the sale will be used to pay down debt, following fees and expenses. The deal is expected to close in the first quarter of next year. 

More importantly, it’s the first international refranchising agreement since Krispy Kreme announced a turnaround plan in August that features fewer company locations and more franchisee-run units. 

…

The doughnut chain has been in Japan for 20 years and has 89 locations there and 300 points of access in Tokyo, Osaka and other major cities.

It will now be owned by Unison, which specializes in consumer, healthcare and business-to-business services. It has raised about $5 billion in assets across six funds in Japan and three in Korea. It has invested in a bubble tea, noodle and sushi chains along with a wine retailer. 

The move fits neatly into two broader trends that are currently shaping the industry. First: selling company units to franchise groups. In recent months, Papa John’s announced a large refranchising push, Hooters is moving from a hybrid franchise and company-owned model to solely franchising, and Burger King sped up its timeline for refranchising the 1,000 restaurants it purchased from its (formerly) largest franchisee, Carrols.

Second, brands are increasingly putting their international stores into the hands of local operators. Last month, Starbucks sold a controlling interest in its China business to Hong Kong-based Boyu Capital, and also last month, Restaurant Brands International formed a JV with the Chinese alternative asset manager CPE to run the newly formed Burger King China.

Other Headlines

Name That Chain!

You’ve got three guesses to name this week’s mystery chain:

  • This chain once tried to convince the internet it was changing its name — and succeeded (at least long enough to dominate social media for a few days).

  • While it’s famous for breakfast, most customer visits now happen after noon.

  • It’s opening an increasing number of cobranded stores with a sister brand.

Find the answer at the bottom of the email…

#Content Recs

Power Moves

A few big seat changes this week across the industry:

What’s Happening at FS Supply

Just got this in: a new shipment of branded cello bags.

We’ve been producing these for over a year now, and they’ve proven great for presenting chocolates and other dessert items. They’re versatile — just about any dimensions can be made — and they take what was formerly a basic plain bag and turn it into an excellent marketing opportunity. Hit me up if you’re interested in seeing how they can work with your menu: [email protected].

Thanks for reading! I’ll see you in 2026.

NAME THAT CHAIN ANSWER: IHOP. I was surprised to learn 53% of visits come 12 pm.

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