Private equity group buys out Shipley Do-Nuts company
In the world of quick-service restaurants, Levine Leichtman Capital Partners has made a notable move with the acquisition of Shipley Do-Nuts, a renowned doughnut chain based in Houston, Texas. The deal was finalised in July 2025, marking the end of Shipley Do-Nuts' tenure with its previous owner, Peak Rock Capital, which had purchased the brand in 2021 [1][2][3][5].
Shipley Do-Nuts, famous for its doughnuts, kolaches, coffee, and pastries, is currently poised to open more than 40 new units in 2025, reflecting a growth of over 10%. Under Peak Rock's ownership, the brand achieved an impressive 18 consecutive quarters of same-store sales growth [1][3][4]. Levine Leichtman aims to build upon this momentum, leveraging its experience in growing and selling successful restaurant brands like Tropical Smoothie Café and Nothing Bundt Cakes [1][3][4].
The acquisition aligns with Levine Leichtman's strategy of rapidly growing and profitably scaling restaurant chains before eventual sale, as demonstrated by their recent $2 billion sale of Tropical Smoothie Café. Shipley Do-Nuts' CEO, Flynn Dekker, considers Levine Leichtman the ideal partner for driving growth and innovation, positioning the brand for long-term success [1][3][4].
Franchised restaurant brands have been a popular target for investors due to their minimal capital spending and resilience to recessionary downturns. Prior to this acquisition, Levine Leichtman has invested in several restaurant brands, including Mountain Mike's Pizza and Nothing Bundt Cakes [6].
Notably, Shipley Do-Nuts was initially owned by the founding family for 85 years before its sale to Peak Rock Capital in 2021. Today, the company operates 375 locations in more than 14 states, generating $320 million in system sales last year, marking an 8.1% increase from 2023 [1][3][4]. Despite the sale, only 12 of the locations remain directly owned by the company, with the majority being franchisee-owned [1][3].
The sale of Shipley Do-Nuts is one of several high-valuation restaurant brand acquisitions that have taken place over the past couple of years, including Tropical Smoothie, Dave's Hot Chicken, and Jersey Mike's [7]. As Levine Leichtman Capital Partners continues to expand its portfolio in the quick-service restaurant industry, it remains to be seen what the future holds for Shipley Do-Nuts and its continued growth.
References: [1] https://www.bizjournals.com/houston/news/2025/07/16/shipley-doughnuts-sold-to-levine-leichtman.html [2] https://www.peakrockcapital.com/news/shipley-do-nuts-sold-to-levine-leichtman-capital-partners [3] https://www.shipleydonuts.com/press-releases [4] https://www.levineleichtman.com/news/shipley-do-nuts-acquired-by-levine-leichtman-capital-partners [5] https://www.businesswire.com/news/home/20250716005638/en/Shipley-Do-Nuts-Announces-Sale-to-Levine-Leichtman-Capital-Partners [6] https://www.levineleichtman.com/portfolio/restaurants [7] https://www.restaurantbusinessonline.com/financing/private-equity-deals-continue-drive-restaurant-sector-mergers-and-acquisitions
- The acquisition of Shipley Do-Nuts by Levine Leichtman Capital Partners signifies a significant shift in the restaurant finance sector, marking a new chapter in the brand's lifestyle and business trajectory.
- As Levine Leichtman Capital Partners aims to grow and scale Shipley Do-Nuts, this move could potentially reshape the quick-service restaurant industry and set new benchmarks in restaurant finance and business development.
