Qdoba Joins Modern Market, Lemonade in Merger

The private equity firm Butterfly—the parent company of Modern Restaurant Concepts—announced today that it’s acquiring the Mexican fast-casual chain Qdoba.

Qdoba, with over 750 locations, will now join Modern Market Eatery and Lemonade under the Modern Restaurant Concepts umbrella, each operating separately. The acquisition will grow Modern Restaurant Concepts’ locations to approximately 800, and the company says it sees potential for more than 3,000 units across the trio of brands.

“With this transaction, we could not be more excited to bring together three incredible restaurant brands in Qdoba, Modern Market and Lemonade to form one of the leading next-generation restaurant platforms,” says Adam Waglay, cofounder and co-CEO of Butterfly, in a press release. “Together, these brands are incredibly positioned for the future with craveable food, flexible and affordable menu choices and a powerful off-premise offering.”

Qdoba’s CEO, Keith Guilbault, will continue to lead the brand as co-CEO of Modern Restaurant Concepts.

As part of the announcement, the Modern Restaurant Concepts also announced Modern Market signed its first multiunit franchise development agreement, which will add 40 locations to seven states. The brand currently operates in Colorado, Texas, Arizona and Indiana. Qdoba is also in a growth phase, with 300 locations in its development pipeline, set to open over the next five years.

The terms of the transaction weren’t disclosed.