Butterfly Equity has closed a $527m continuation fund to accelerate the growth of Qdoba, the franchised Mexican fast-casual chain it acquired from Apollo Global Management in 2022.

The transaction was led by Apollo S3, a subsidiary of Apollo, with participation from both new and existing investors. The fund provides liquidity to existing shareholders, strengthens Qdoba’s capital structure, and offers a clear runway for expansion, according to the announcement.

Since its acquisition, Butterfly has repositioned Qdoba toward a franchise-led model, selling over 120 company-owned restaurants to franchisees in 2023 and 2024. The chain now has more than 500 units in various stages of development across the US, aiming to double system sales within five years.

Qdoba reported strong performance across its mature franchise base, with same-restaurant sales rising 9.3% in FY 2022, 5.8% in FY 2023, and 8% in FY 2024.

Apollo partner and S3 co-head Steve Lessar said, “We have been impressed by the progress that Butterfly has made in positioning Qdoba for sustained growth and believe the depth and breadth of the Apollo platform enables us to execute bespoke transactions like this.”

Qdoba CEO John Cywinski, who joined in 2023, added that the chain is well-positioned to capitalise on the momentum in the fast-casual segment despite mixed performance across the sector, including a 4% drop in same-store sales at rival Chipotle in Q2 2025.

The deal reflects continued investor appetite for high-growth restaurant platforms, with other recent private equity activity including Freeman Spogli’s acquisition of Philz Coffee for $145m.

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