Roark Capital acquires Dave’s Hot Chicken for US$1B, fueling global expansion

USA – US-based private equity firm Roark Capital has acquired the rapidly growing fast-casual chain Dave’s Hot Chicken in a deal valued at US$1 billion, as reported by The Associated Press.

The acquisition marks a major milestone for the Los Angeles-born brand, which began as a humble pop-up in a parking lot in 2017 and is now on track to reach 400 restaurants worldwide by the end of this year.

Dave’s Hot Chicken has experienced remarkable growth since its founding by four friends, including chef Dave Kopushyan, who developed the brand’s signature Nashville-style hot chicken recipe.

The company’s unique menu, featuring chicken tenders and sliders with a variety of spice levels, has fueled its popularity and rapid franchising.

The brand has also attracted high-profile investors, most notably rapper Drake, whose involvement has helped boost its cultural cachet and visibility.

Despite the change in ownership, Dave’s Hot Chicken’s leadership team—including CEO Bill Phelps and the original founders—will remain in place to drive menu innovation, oversee operations, and manage marketing efforts.

Phelps expressed the team’s excitement about the partnership, emphasizing the strong fit between the brand and Roark Capital, and their shared commitment to continued growth and value creation for franchise partners.

Roark Capital, based in Atlanta, is known for its focus on franchised businesses and already owns a portfolio of major restaurant brands, including Subway, Dunkin’, Arby’s, and Buffalo Wild Wings.

The acquisition of Dave’s Hot Chicken aligns with Roark’s strategy of investing in scalable, franchise-driven concepts with strong growth potential.

Currently, Dave’s Hot Chicken operates over 300 restaurants and has granted franchise rights for more than 1,000 locations across the United States, Canada, the Middle East, and the UK.

The brand aims to open more than 155 new sites this year, leveraging its strong social media presence and appeal among younger consumers.

Industry observers note that Dave’s Hot Chicken’s rapid ascent and Roark Capital’s backing position the chain for continued expansion in the competitive fast-casual market.

With its leadership team intact and a robust pipeline of new locations, Dave’s Hot Chicken is poised to further solidify its status as a standout player in the global restaurant industry.

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