Published Date : Mar 15, 2016
In the US$40 billion pizza industry, MOD Pizza appears to be the new shining star. The fast-casual pizza chain has raised US$32 million in the company’s latest round of equity funding. The chain is planning to utilize this fund in doubling its number of stores. Currently, the company is operating across 110 locations in 16 states of the U.S. In 2015, MOD tripled its number of stores. So far, the company has raised funds worth US$106 million from a small group of private investors and PWP. The recent funding round was led by Perella Weinberg Partners, the boutique investment bank which holds seats in the company’s boardroom as well.
According to Scott Svenson, the CEO and co-founder of MOD Pizza, the company will expand its presence across the U.K. which will be its first overseas engagement. The chain will open 70 company-owned locations this year and about 30 franchise stores. MOD claims that it has been a frontrunner in the fast-casual chain business since 2008, with focus on pizza. Since then, a number of companies have entered the market, including chains backed by Buffalo Wild Wings and Chipotle.
MOD has No Intentions of Going Public Early
In the recent years, the fast-casual category has registered a rapid growth with customers preferring to pay more money to get fast food that has healthier ingredients and is served in less time. A number of companies in this market have gone public in the last couple of years. However, their stock performances have been mixed and their growth has not been as competitive as expected by investors. MOD Pizza has mentioned that it has no intentions of going public earlier than required. In 2015, the company generated revenue worth US$60 million with same-store sales growth of 12.4%