People Are Making Billions Investing in Little Caesar's

Key Takeaways

I think it was in the Wall Street Journal. It was March 1st, 2025. It was about two buddies who raised a fund and bought a bunch of franchises and now have a multi-billion dollar fund and I think they've taken out hundreds of millions of dollars out of the business because of it. Do you know what I'm talking about, Alex? >> There's a number of private equity family offices starting to get further and further into franchising and they're one good example of it. They're buying both large franchises or they're doing roll-ups essentially of all right Sam, Sean, and Alex own five Jersey Mike's and they find six of us and they go buy all 30 of them. They're doing these kind of one-off deals, but now they own a 30 unit portfolio that's doing an average of 2.5 million per location and you now have close to $100 million a year revenue business via acquisition. >> The Wall Street Journal phrased it so differently because when I think of franchise, I think of a little bit blue collar or an exNBA basketball player. The headline was Meet the Best Friends who are private equity's newest young stars. They've so far have raised $3.5 billion. They're only 38 years old and they bought everything from gyms, funeral homes, car washes, and they bought hundreds of these and they've just operated it really well. And I think their big win was betting on Little Caesars. I think they bought a bunch of Little Caesars maybe 8 years ago. Now it's been really popular. But the way that they've rebranded this was actually amazing. >> [music]