Is Fogo de Chão Private Equity Owned?
Fogo de Chão
Includes Fogo de Chao, Fogo
brazilian steakhouse · Dallas, TX
2023
“Three private equity firms in eleven years, but sure, this time it's about 'accelerating growth.'”
The PE Playbook
- •Passed through three PE owners since 2012 — Thomas H. Lee ($400M), Rhône Group ($560M), and now Bain Capital ($1.1B) — each one flipping the chain for a bigger payout while loading more debt
- •Bain financed the $1.1 billion deal with a $550 million bank loan and $75 million credit facility — over half the purchase price is borrowed money strapped to the restaurants
- •Thomas H. Lee took the chain public in 2015 at $20/share, but the stock never gained traction — Rhône swooped in to take it private again for $560M in 2018, then sold to Bain for nearly double
- •Rhône filed for a second IPO in 2021 targeting $200 million, then withdrew it when Bain offered $1.1 billion instead — PE firms keep passing Fogo around like a churrascaria skewer
Since the Acquisition
- ▸The full churrasco dinner has crept from around $49-55 per person to $59 on average, with the 'Best of Brazil' promo jumping from $39 to $49 in a single year — death by a thousand small price hikes
- ▸Customer satisfaction has cratered to 1.7 out of 5 stars on PissedConsumer, with recurring complaints about declining meat quality, inconsistent service, and management ignoring follow-up
- ▸Alcohol sales pushed from 10% to 14% of total revenue under the growth playbook — upsell pressure on $16 cocktails and wine pairings keeps climbing while the core dining experience holds steady
- ▸Bain's expansion plan targets 100 locations and $1 billion in revenue within five years — rapid unit growth funded by borrowed money is the classic PE recipe for stretching quality thin
Sources
- Bain Capital buys Fogo de Chão in $1.1 billion deal — Reuters(2023-08-15)
- Fogo de Chão acquired by Bain Capital — Nation's Restaurant News(2023-08-15)
- Fogo de Chão starts new chapter under new ownership — Nation's Restaurant News(2023-10-01)
- Rhône Capital to acquire Fogo de Chão for $560M — Nation's Restaurant News(2018-02-22)
- Banks sold $550M leveraged loan for Bain's Fogo de Chão acquisition — Bloomberg(2023-09-21)
Also owned by Bain Capital
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Frequently Asked Questions
Is Fogo de Chão owned by private equity?
Yes. Fogo de Chão is currently owned by Bain Capital, which acquired it in 2023. Three private equity firms in eleven years, but sure, this time it's about 'accelerating growth.'
What happened to Fogo de Chão after the acquisition?
The full churrasco dinner has crept from around $49-55 per person to $59 on average, with the 'Best of Brazil' promo jumping from $39 to $49 in a single year — death by a thousand small price hikes Customer satisfaction has cratered to 1.7 out of 5 stars on PissedConsumer, with recurring complaints about declining meat quality, inconsistent service, and management ignoring follow-up
Who owns Fogo de Chão?
Fogo de Chão is owned by Bain Capital, which acquired it in 2023.