MOD Pizza, the country’s fastest-growing restaurant chain, according to the NRN Top 200 data, has raised another $160 million in equity financing from Clayton, Dubilier & Rice private investment firm.
With the latest round of funding, the Bellevue, Wash-based pizza chain has set a target to open more than 500 locations over the next five years, which would more than double its unit count to 1,000 total locations.
MOD CEO Scott Svenson said in a statement that the deal, which brings the fast-casual pizza brand’s fundraising total to $339 million, supports MOD’s philosophy that “profit and positive social impact can co-exist.”
As part of the deal, Ken Giuriceo and Paul Pressler, partners at Clayton, Dubilier & Rice will both join the MOD Pizza board of directors.
“MOD has clearly proven that building a business around a meaningful and authentic purpose can align and inspire the team to produce incredible results,” Ken Giuriceo said in a statement. “The company is poised to continue its rapid growth, and we are thrilled to join their talented team of industry veterans to further develop and strengthen the MOD business and brand.”
Over the past three years, the chain has tripled in size, adding 102 units last year, the company said. The pizza chain also launched its first loyalty program and mobile app in 2019, with a points-to-dollars structure that also gives customers the option to donate their points to charity.
MOD had U.S. systemwide sales of $390.7 million in 2018, up 44.7%, from $270 million a year earlier, according to 2019 NRN Top 200 data. It was the fastest-growing chain in the Top 200 for the second year in a row.
“Over the past 11 years, we have built MOD upon a conviction that we could build a best-in-class business by putting our people and the communities we serve first,” Svenson said in a statement. “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.”
In January 2018, MOD raised $185 million in equity capital, including $33 million in January 2018, adding on to the $42 million the company raised in November 2016.
MOD Pizza currently has 433 locations systemwide.
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