Popular fried chicken chain acquired by private equity firm in $1B deal

Published: Tuesday, June 3, 2025 at 6:15 pm

Dave's Hot Chicken Acquired by Private Equity Firm in $1 Billion Deal, Fueling Expansion

Dave's Hot Chicken, the rapidly growing fried chicken chain, has been acquired by private equity firm Roark Capital in a deal valued at $1 billion. This investment is poised to accelerate the chain's expansion plans, both domestically and internationally.

Founded in 2017 by a group of friends, Dave's Hot Chicken quickly gained popularity, starting as a humble parking lot operation. The concept's success led to the opening of its first brick-and-mortar location and, subsequently, a franchising agreement. The company has already sold franchise rights for over 1,000 locations across the U.S., the Middle East, and Canada.

The acquisition by Roark Capital, a firm with a significant presence in the restaurant industry, marks a pivotal moment for Dave's Hot Chicken. Roark, with substantial assets under management, has a history of investing in and growing established franchise brands. This acquisition follows Roark's recent purchase of Subway, further solidifying its position in the fast-food market. Dave's Hot Chicken currently operates over 300 locations and anticipates exceeding 400 by the end of the year, with plans to open over 155 new locations this year.

BNN's Perspective:

This acquisition highlights the ongoing trend of private equity firms investing in the fast-food sector. While such investments can provide the capital needed for rapid expansion and operational improvements, it's crucial to monitor the impact on the brand's core values and the quality of the customer experience. The success of Dave's Hot Chicken will depend on its ability to maintain its unique appeal while navigating the complexities of large-scale growth under new ownership.

Keywords: Dave's Hot Chicken, Roark Capital, acquisition, fried chicken, fast food, franchise, expansion, restaurant industry, investment, Subway, Bill Phelps, growth, locations, private equity, billion dollar deal, Middle East, Canada

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