The buyout buffet

The hottest trend in food right now isn’t concocting spicy chicken sandwiches or packing protein into everything—it’s going private.

Today, Reuters reported that Magnum is exploring a potential sale that would take the ice cream giant private, drawing early interest from private equity firms including Blackstone and CD&R. Shares jumped 11.12% on the news. Meanwhile, Papa John’s International is reportedly in the crosshairs of a potential buyout led by Irth Capital Management and major franchisee Nadeem Bajwa that would take the company out of public markets. Shares gained 6.14% today.

Ice Cream, Pizza, and Burgers: Rounding out the major food groups, Wendy’s also sparked renewed buyout speculation after reports that Trian Fund Management, led by Nelson Peltz, was exploring a potential take-private deal. Peltz previously floated a bid for the burger chain back in 2022, but rapidly rising and unpredictable interest rates ultimately derailed the effort. Wendy’s shares are up 9.86% over the past five days.

A recipe for buyouts

Consumer-facing food companies are navigating a difficult environment amid geopolitical uncertainty. Higher input costs—including fuel and ingredients—continue to pressure the supply side, while softer labor conditions, strained household budgets, and the rise of GLP-1 weight loss drugs are weighing on consumer demand. Together, those pressures have contributed to softer foot traffic and tighter margins across the industry.

That pressure has pushed down valuations, creating an opening for private equity firms that believe much of the downside is already reflected in stock prices. On the other hand, private equity now broadly expects interest rates to stabilize over time, making debt financing more predictable and leveraged buyouts easier to structure.

The other side of the PE playbook

Amid the food sector deal frenzy, Inspire Brands—owned by Roark Capital Group and parent to chains including Dunkin’, Buffalo Wild Wings, and Jimmy John’s—is preparing for an IPO.

The company is a restaurant giant in its own right, operating more than 33,300 locations globally and generating roughly $33.4 billion in sales last year. According to reports, Inspire is seeking a valuation of roughly $20 billion.

The move highlights the other side of the private equity cycle: While firms are looking to take pressured or undervalued food companies private, once they’ve completed a turnaround they’re prepared to bring larger, more mature consumer brands back to public markets. And with Jersey Mike’s also reportedly filing for an IPO last month, the next course of restaurant dealmaking may be coming out of the kitchen.—SY