MOD Pizza raises US$160m
The chain expects to reach approximately 1,000 locations over the next five years.
U.S. fast casual restaurant chain MOD Pizza announced a US$160 million equity financing led by private investment firm Clayton, Dubilier & Rice (CD&R) and current investor Fidelity Management & Research Company.
CD&R partners Ken Giuriceo and Paul Pressler will both join the MOD Pizza board of directors as a result of the move.
The latest funding comes as MOD posted US$398 million in system-wide sales and added 102 new locations last year. To date, the chain has raised approximately US$339 million of equity.
With the additional capital, MOD expressed its plans to maintain growth across existing and new markets in the US and internationally. Currently with 433 MOD locations system-wide, the company expects to reach approximately 1,000 locations over the next five years, creating more than 14,000 new jobs. MOD also plans to invest in off-premise and digital capabilities.
“This investment is further validation of our belief that profit and positive social impact can co-exist. We are incredibly energized by the opportunity to work with CD&R to scale the MOD brand, while continuing to build our people-first, purpose-driven culture,” MOD Pizza co-founder and CEO Scott Svenson said in a statement.
J.P. Morgan acted as sole placement agent to MOD in connection with the private placement.
In 2018, MOD grew its footprint 34% by adding 102 locations system-wide, ending the year with a total of 404 locations. System-wide sales reached US$398 million, a 45% year-over-year increase, whilst domestic system-wide same-store sales grew 3.1%. Company net revenue was US$312 million, up 42% over 2017.
