Nothing Bundt Cakes’ $2 billion sale to private equity firm KKR could turn out to be one of the largest restaurant moves of the year. On the surface, it feels a remarkable turn for a 1997-founded bakery chain that specializes in frosted desserts. But expansion has been mounting for a while as it chases ambitions to become one of the highest-growth companies in the sector, with a target of 1,000 stores by 2027.
This past year, per Nothing Bundt Cakes’ recent FDD, represented another step upward as it lifted by a net of 119 restaurants to reach 779. That followed net expansion of 101 in 2024 and 84 the prior year.
Nothing Bundt Cakes entered 2026 with 771 franchised units (growth of 128, year-over-year) and eight company owned (decline of nine).
There are six restaurants in Canada to go along with 765 in the U.S. The brand opened 128 domestic restaurants, ceased one for “other reasons” and terminated zero. Canada debuted a location and had no other activity.
It was the first store to cease operations in at least four years for the brand. Nothing Bundt Cakes has lifted by a net of 355 restaurants from 2022–2025—a run that’s included just a single closure.
LOOK BACK: Explore Nothing Bundt Cakes’ 2024 FDD
A solid crop of 2025’s growth came in California, where Nothing Bundt Cakes rose from 71 to 93 restaurants. It had 64 in 2023. Texas also jumped from 97 to 110 and has added a net of 37 stores over the past three years.
As for 2026, Nothing Bundt Cakes projected 141 franchised openings. It claims to have 83 agreements signed without an outlet opened yet. No company growth is on the docket.
If that happens and the brand continues to limit closures, it would enter 2027 with 920 locations and likely cross the four-digit threshold during the middle of the calendar, just as promised.
Like noted, it’s going to unfold under new ownership. Nothing Bundt Cakes’ indirect parent company, Bloom Buyer, LLC, acquired the brand on May 18 (merger agreement was dated March 17). Upon closing, Bloom Topco, which is a Delaware limited liability company, took control. Topco is directed by invested funds affiliated with KKR.
KKR bought Nothing Bundt Cakes from Inspire Brands, GoTo Foods, Subway, and Dave’s Hot Chicken owner Roark Capital.
Nothing Bundt Cakes has had an eventful ownership journey. It was sold to Levine Leichtman Capital Partners in 2016 (a company that’s held stakes in Tropical Smoothie, CiCi’s, Mountain Mike’s, and others in the past, and bought Shipley Do-Nuts last July) when it had 175 or so locations. Cofounder Dena Tripp kept a significant piece while cofounder Debbie Shwetz moved on. It then went to Roark five years ago and Tripp exited. The brand more than doubled to roughly 390 units.
So, it essentially grew another 100 percent between ownership changes this go-around, too.
KKR, created by George Roberts, Henry Kravis, and Jerome Kohlberg, has been around since 1976 and features offices across America, Europe, the Middle East, and Asia Pacific.
Nothing Bundt Cakes’ FDD unravels one of the industry’s more involved Item 19s.
Starting with average net revenues and KPIs, the brand includes 545 franchise bakeries (operating for at least two full fiscal years) in its reporting. There were no franchised bakeries in action for at least 24 months as of full-year 2025 excluded for any reason.
The company separated the pool into thirds based on net revenues, with the top portion reflecting results of 182 stores with the highest average net revenues for the 2025 fiscal year; the bottom showing performance of 182 units with the lowest; and the middle comprising 181 franchises whose average net revenues fell in between.
The 545 restaurants operated for an average of 7.4 years, showing another reality about the brand KKR just bought—it’s a mature concept with steady year-on-year performance.
The average net revenue figure across in 2025 was $1.477 million. Median, $1.336 million. Those compared to $1.48 million and $1.355 million, respectively, from the prior year.
Top-, mid-, and bottom-third results of $2.109 million, $1.358 million, and $962,724 compared year-over-year to $2.083 million, $1.371 million, and $985,034.
Nothing Bundt Cakes’ 101 franchised bakeries that opened in 2024 and had a full year of operation by year’s end (meaning they were running 12 months instead of 24), posted average net revenues of $1.023 million. The highest was $3.095 million and the lowest $318,533. Median net revenues were $941,492, with 41 percent (41 stores) at or above the average.
For a sense of how recent fleet locations are performing versus the prior year, Nothing Bundt Cakes had 78 that slotted into that distinction in 2023. And those boasted average net revenues of $981,990. The highest, $2.417.841 million and lowest $302,017. Median net revenues were $936,879 and 35 (45 percent) of bakeries met or exceeded the average figure.
While consistent here, too, the 2024 class did outperform 2023 slightly, even with more stores factored in.
Another data point Nothing Bundt Cakes includes concerns net revenues per square foot. It adds the same 545 franchised stores included earlier to show how they performed based on if the restaurant was more than 1,800 square feet or less. There were 162 stores with boxes smaller and 383 greater.
The message the company is trying to get across is larger bakeries do not necessarily achieve better financial performance. “To support franchisee profitability and return on investment,” Nothing Bundt Cakes said, “we closely monitor build-out, lease, and labor costs. Wherever feasible, we encourage our franchisees to secure leases for locations at or below 1,800 square feet to help minimize operational expenses and enhance long-term financial sustainability.”
The smaller restaurants had average net revenues of $1.572 million and larger $1.437 million. Net revenues per square feet were $1,066 versus $645.
Continuing a year-over-year theme of stability, the average 2024 net revenues came in at $1.588 million for the sub-1,800-square-foot spots and $1.437 million north of it.
Additionally, Nothing Bundt Cakes shares average net revenues, average cost of goods sold, average gross margin, payroll costs, occupancy expenses, advertising expenses, other, and four-wall EBITDA for 358 franchised bakeries across 2025 (operating at least 24 months as well).
It excluded 409 stores for a variety of reasons, from units not submitting full-year P&L data in 2024 to there being a greater than 10 percent discrepancy between POS system net revenues and what an operator sent in. Some (222 locations) were also not operating long enough, and 18 stores converted their bakeries into “Hub” locations, where the restaurant performed baking and other duties for nearby restaurants they also owned. So, those spots were not necessarily reflective of what it’s like to run a traditional Nothing Bundt Cakes on the cost line.
Next, Nothing Bundt Cakes laid out the first seven years of net revenues for franchised stores opened from January 1, 2018, to December 28, 2024, or what it calls “2018 Vintages.”
Year 1 included 419 stores open a full year by December 28, 2024. Year 2 excluded 100 not open two years by that date. Year 3 excluded 183 bakeries not open three full years; Year 4 234 not open four years; Year 5 238 not open five years; Year 6 328 not open six years; and Year 7 377 not open seven years.
Also, the chart showed the first three years of net revenue performance for franchises opened from January 1, 2022, to December 28, 2024 (2022 Vintages).
The larger premise—stores perform better over time.
The following chart got into net revenues for 652 bakeries opened at least a full year and categorized restaurants based on the order in which they opened within respective regions.
It’s a look at competitive analysis by density of stores. Nothing Bundt Cakes measures five regions within the U.S. As of full-year, there were 194 in the Southeast, 134 in the West, 130 in the Midwest, 132 in the Southwest, and 64 in the Northeast included.
The density groups are broken down into 25 bakery increments. So, if a bakery is in the density group “51–75” in its region, it means the location was between the 51st and the 75th to open and operate within its respective area.
Similarly, a Nothing Bundt Cakes in density group “76+” opened after there were at least 75 bakeries open and operating in its respective region.
The company included a resale analysis as well. The goal being to show what happens what a bakery is sold to a new owner who operates it with an “increased emphasis on key operational metrics.”
To be included, the franchised location had to be in operation for a minimum of 12 months prior to the resale transaction and in operation for at least 12 months after the deal closed.
It analyzed net revenue performance for 112 restaurants that were transferred via a resale to both existing Nothing Bundt Cakes franchisees and new operators to the system from January 1, 2021, to December 28, 2024. And then split by prior-year net revenues.
The bakeries in the $1 million-plus group had operated for an average of 7.12 years prior to resale; $1 million–$750,000 3.86 years; and sub-$750,000 2.33 years.
Nothing Bundt cakes ended 2025 with total revenues (in thousands) of $64,811, up from $52,274 in 2024. Net income (also in thousands) was $39,698, a rise from $29,103.
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