Dave's Hot Chicken acquired by private equity firm that owns Subway
Just eight years after starting in a Los Angeles parking lot, Dave's Hot Chicken has been acquired by private equity firm Roark Capital in a deal worth approximately $1 billion to enter its "next phase of growth and innovation."
A spokesperson for Dave's Hot Chicken confirmed the acquisition to USA TODAY via email on Wednesday, June 4.
Started by three childhood friends in a parking lot in Los Angeles in 2017, the chain primarily offers chicken tenders and chicken sandwiches and expects to end the year with over 400 locations worldwide. According to the company, it has sold the rights to more than 1,000 franchise locations in the U.S., Middle East and Canada and will open 155-plus locations this year.
'This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,' said Bill Phelps, Dave's Hot Chicken's CEO, in a news release. 'Our entire organization is excited about the fit between Dave's Hot Chicken and Roark, and we're looking forward to continuing to blow our guests' minds and unlocking growth and value for our franchise partners.'
According to reporting from CNBC, Phelps, who previously led Wetzel's Pretzels for 25 years, joined Dave's in 2019, less than two years after its founding. Phelps told the business news outlet Dave's could reach up to 4,000 locations worldwide over the next 10 years.
Dave's leadership team will remain in their roles, according to the news release, continuing to drive the company's "menu innovation, food quality, in-store experience, operations, marketing, branding, digital and more."
More news: Dollar Tree expects to take profit hit from tariffs, shares drop on outlook
What is Roark and which companies do they own?
According to the acquisition announcement, Roark is an Atlanta-based private equity firm with $40 billion in equity under management.
The company has several well-known brands in the restaurant and food industries in its portfolio, including Buffalo Wild Wings, Arby's, Dunkin', Jimmy John's, and Sonic, among more.
The company acquired sandwich giant Subway in 2023 for nearly $10 billion in what was one of the biggest fast food acquisitions ever.
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.
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