Fast-growing fried chicken chain Dave’s Hot Chicken has been acquired by Roark Capital in a $1 billion deal, setting the stage for an ambitious global expansion.
The Los Angeles-based restaurant brand, known for its spicy chicken tenders and sandwiches, plans to open over 155 new locations this year—bringing its total count to more than 400 stores by year’s end. The company currently operates more than 300 restaurants.
The acquisition gives Dave’s Hot Chicken access to Roark’s deep industry expertise and capital, helping the brand scale more rapidly in the U.S., Canada, and the Middle East, where it has already sold rights to more than 1,000 franchise locations.
Founded in 2017 by three childhood friends with just $900, Dave’s Hot Chicken started in a parking lot with folding tables and portable fryers. The brand quickly grew after partnering in 2019 with Bill Phelps, the former CEO of Wetzel’s Pretzels, who now serves as the company’s CEO.
“This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,” said Phelps.
Roark Capital, based in Atlanta and managing over $40 billion in assets, has become a dominant player in the restaurant and franchising world. Its portfolio already includes major food brands such as:
- Inspire Brands – parent company of Arby’s, Dunkin’, Jimmy John’s, Sonic, and Buffalo Wild Wings
- GoTo Foods – owner of Auntie Anne’s, Carvel, Cinnabon, and Jamba
- Culver’s and Subway, which Roark acquired in 2024
With the addition of Dave’s Hot Chicken, Roark continues to consolidate high-performing fast-food brands under its umbrella, betting on strong consumer demand despite rising inflation in the sector.
With input from FOX Business.
