Exclusive: California Pizza Kitchen Secures Buyout from Investor Consortium, Signals **Private Equity Restaurant Turnaround** Play

Deal Rationale: Leveraging Brand Equity in a Fragmented **Restaurant M&A Market**

CPK, founded 40 years ago in Beverly Hills, operates over 120 locations across 10 countries, generating nearly **$1 billion in annual revenue** despite a rocky history.[1][5] Post-**Chapter 11 bankruptcy in July 2020**—triggered by pandemic shutdowns and legacy debt from prior owner **Golden Gate Capital**’s 2011 $470 million acquisition—lenders have held control.[1][3] U.S. systemwide sales dipped 12.3% to $406 million last year amid 17 closures, but 2025 same-store sales have outpaced industry averages, fueling buyer optimism.[3]

New owners eye **aggressive franchising** in the U.S. and abroad, menu innovation, and CPG acceleration via partnerships like Nestlé for frozen pizzas and Litehouse for salad dressings, now in over 10,000 global grocery stores.[1] “CPK has extreme brand loyalty… and there’s an incredible amount of opportunity left,” noted **Consortium founder Cory Baker**.[1] This aligns with broader **private equity restaurant investment trends 2025**, where firms target resilient casual-dining icons amid stabilizing consumer spending, per McKinsey’s latest hospitality outlook emphasizing hybrid dine-in/retail models for margin resilience.

Leadership and Buyer Synergies: Proven Operators Drive **Casual Dining Turnaround Strategies**

Jon Weber brings deep expertise, having led **Pizza Hut and Wendy’s operator NPC International** before helming Convive’s portfolio of Le Pain Quotidien and The Little Beet.[1][3] **Eldridge Industries** (Todd Boehly’s firm), **Bain Capital Credit** (providing debt/equity), and **Aurify Brands** (franchisee to Five Guys and Wingstop) complete a synergistic group with complementary restaurant footprints.[1][3]

Consortium President Jonathan Greller highlighted CPK’s “iconic American brand” potential for global expansion and new product categories, echoing **Bain & Company** analyses on consumer brands blending experiential dining with CPG for 15-20% EBITDA uplift in mature chains.

Financial Snapshot and Industry Context

This deal mirrors **pizza sector M&A activity**, with investors eyeing **Papa John’s**, **Yum Brands** exploring a **Pizza Hut sale**, and **MTY Food Group** (Papa Murphy’s parent) in sale talks—signaling **casual dining consolidation trends 2025** amid valuation resets to 4-6x EBITDA for turnaround assets, akin to KKR’s playbook in legacy foodservice.[1]

Implications for **Private Equity Exit Strategies in Restaurants** and Investors

For C-level executives and deal advisors, CPK’s buyout exemplifies **distressed-to-growth pivots** in hospitality PE, leveraging operational expertise from Convive/Aurify for franchising scale while monetizing CPG IP. Risks include labor costs and consumer shifts, but Bain Capital Credit’s involvement suggests structured financing mitigates downside. Expect similar plays in fragmented casual dining, per Goldman Sachs’ 2025 M&A forecast projecting 10-15% uptick in mid-market foodservice deals.

• Franchising Push: U.S./international expansion via partners.[1][3]
• CPG Growth: Nestlé/Litehouse tie-ups to drive non-restaurant revenue.[1]
• Historical Comps: Golden Gate’s 2011 entry/exit amid debt overhang.[3]