Kahala Brands acquired by MTY Food Group

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $300–700M

Context

In a transformative cross-border transaction, MTY Food Group has completed the acquisition of 100% of the shares of Kahala Brands. The deal is classified as a Full Acquisition (100%), structured as a merger between a wholly-owned subsidiary of MTY and the target. This acquisition marks MTY’s entry into the United States, effectively doubling its scale with the combined entity. This strategic deal allows MTY to fully internalize Kahala’s profitable and scalable U.S. platform, moving its regional headquarters to Arizona to leverage local expertise. From a structural standpoint, the retention of Kahala's leadership team to head the U.S. operations facilitates a seamless integration. This deal highlights the ongoing trend of large-scale consolidation within the franchised restaurant sector, where Canadian incumbents are utilizing leveraged buyouts to capture the scale and market depth of the U.S. QSR industry, shifting from domestic leaders to North American heavyweights.

Kahala Brands, which reported an EBITDA margin of [members only] in 2015, is valued in this transaction at an EV/EBITDA multiple of 10x–18x.

-> Deep-dive in Retail & Consumer market trends

Target

Kahala Brands, Ltd. is a leading global owner and franchisor of a diverse portfolio of quick-service restaurant (QSR) concepts. Headquartered in Scottsdale, Arizona, the company manages 18 distinct brands—including Cold Stone Creamery, Blimpie, and TacoTime—representing approximately 2,800 locations across 27 countries. Kahala operates a sophisticated platform focused on brand development, supply chain management, and franchisee support, enabling its various concepts to achieve significant operational scale and market penetration. From a market positioning perspective, Kahala is a specialized powerhouse in the franchised restaurant sector, known for its ability to manage a heterogeneous portfolio of lifestyle and food brands under a unified corporate structure. Its business model is highly capital-light and scalable, centered on royalty streams and franchise fees rather than direct restaurant operations. This structure generates high visibility for cash flows and allows for rapid international expansion through master franchise agreements.

Ent. Value

$300–700M

Equity Value

[members only]

Multiples

EV / Revenue

2x–6x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2015

2014

Other operations with MTY Food Group

Other operations with MTY Food Group
Date	Acquirer	Target	Country	Sector
08/2022	MTY FOOD GROUP	BBQ HOLDINGS	UNITED STATES	Restaurants / Chains
04/2019	MTY FOOD GROUP	PAPA MURPHY'S	UNITED STATES	Restaurants / Chains

Similar deals in Hospitality & Leisure

Similar deals in Hospitality & Leisure
Date	Acquirer	Target	Country	Sector
12/2016	ICG	PARK HOLIDAYS	UNITED KINGDOM	Hospitality
10/2016	GENERAL ATLANTIC / VALEDO PARTNERS	JOE & THE JUICE	DENMARK	Restaurants / Chains
07/2016	JAB BEECH	KRISPY KREME DOUGHNUTS	UNITED STATES	Restaurants / Chains
05/2016	PUBLIC MARKETS (IPO)	BASIC-FIT	NETHERLANDS	Hospitality
05/2016	SEVEN2	SANDAYA	FRANCE	Hotels & Accommodation
04/2016	APHEON / BPIFRANCE	LOOPING GROUP	FRANCE	Leisure Facilities
04/2016	ACCOR HOTELS	ONEFINESTAY	UNITED KINGDOM	Hotels & Accommodation
12/2015	PAI PARTNERS	GROUPE B&B HOTELS	FRANCE	Hotels & Accommodation
11/2015	BC PARTNERS	CIGIERRE	ITALY	Restaurants / Chains
09/2015	ICG	COURTEPAILLE	FRANCE	Restaurants / Chains

REFERENCES

Valuation range: EV $300–700M

Revenue range: $100–200M

EBITDA range: $25–50M

EV/Revenue range: 2x - 6x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Kahala Brands by MTY Food Group are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: kahala brands

FAQ

What transaction does this page cover?

This page covers MTY Food Group’s acquisition of 100% of Kahala Brands, an American company specialised in Hospitality, in 2016.

How was the acquisition of Kahala Brands by MTY Food Group valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $300–700M band, its EV/EBITDA multiple within the 10x - 18x range, and its EV/revenue multiple within the 2x - 6x range. Exact figures are available to members.

What were Kahala Brands’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Kahala Brands generated annual revenue estimated in the $100–200M range and EBITDA in the $25–50M bracket (FY 2015). Detailed financial figures are available to members.

What sources support the information on this transaction?

Transaction intelligence is supported by independent reporting from specialized financial publications, alongside a private document shared by the community and verified by the mynth team to ensure the accuracy of the shared information.

What is mynth?

mynth is the first free M&A database dedicated to Small & Mid-Cap transactions. We centralize Enterprise Values, revenue multiples, EBITDA multiples and transaction financials that are typically locked behind five-figure subscriptions on platforms like Capital IQ or Mergermarket. On mynth, searching and browsing deals is completely free. Our mission is simple: make professional-grade valuation intelligence accessible to every M&A advisor, independent consultant, Private Equity professional and student, without the burden of expensive annual licenses.