With the restaurant industry projected to reach $1.2 trillion in sales by 2027, savvy investors are looking to restaurant investment companies as a way to gain exposure to this growing sector. However, not all restaurant investment firms are created equal when it comes to driving portfolio growth. By analyzing factors like assets under management, portfolio diversity, and past performance, investors can identify the restaurant investment companies that offer the greatest upside potential.
JAB Holding Company’s Diverse Restaurant Investment Portfolio
With over $80 billion in assets under management, JAB Holding Company has established itself as a heavyweight in restaurant investments. Its portfolio includes several leading quick-service restaurant brands such as Panera Bread, Krispy Kreme, and Pret A Manger. JAB has demonstrated strong capital allocation skills, using leveraged buyouts to acquire companies with untapped growth potential. The company then applies its operational expertise to drive same-store sales growth and expand store footprints globally. This active management approach has allowed JAB to consistently deliver market-beating returns.
Inspire Brands’ Focus on Quick Service Results in Outperformance
Backed by private equity firm Roark Capital, Inspire Brands has rapidly become one of the largest restaurant investment companies with a current portfolio of over $15 billion in systemwide sales. The company has built its diverse portfolio through acquisitions of category-leading quick service chains such as Arby’s, Buffalo Wild Wings, Sonic Drive-In, and Jimmy John’s. With expertise across brand management, franchising, and digital technology, Inspire Brands unlocks value by revitalizing sales and improving unit economics across its holdings. The company’s laser focus on quick service restaurants with loyal customer bases has been a recipe for success.
Cava Group’s Platform for Emerging Restaurant Brand Investment
As a relative newcomer, Cava Group has taken a unique approach to restaurant investments by building a platform focused on emerging fast casual dining brands. After acquiring Zoës Kitchen in 2018, Cava Group now oversees a portfolio that also includes Cava Mediterranean restaurants, CAVA, and Artopolis Bakery Cafe. The company is deploying technology and operational best practices across its brands while accelerating new unit growth. With a strong pipeline of new restaurant investment targets, Cava Group offers investors access to the tremendous upside potential of new fast casual concepts.
By diversifying across top-tier restaurant investment companies like JAB Holding, Inspire Brands, and Cava Group, investors can gain exposure to established brands and high-growth emerging chains in the fast-growing restaurant industry.