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Roark Capital, the private equity firm that’s been buying up established franchises, acquired Dave’s Hot Chicken in a $1 billion deal that will fuel the chicken chain’s restaurant expansion.
Dave’s Hot Chicken said the investment from Roark will aid the company as it enters its next phase of growth around the globe as it plans to open more than 155 locations this year.
The company currently has over 300 locations, but it expects that figure to surpass 400 by the end of the year.
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The company was founded by three childhood friends in 2017. With only $900, the trio launched Dave’s Hot Chicken in a parking lot using portable fryers and folding tables. Shortly after, they opened their first brick-and-mortar restaurant.
A shot of Dave’s Hot Chicken sandwiches. (Dave’s Hot Chicken)
In 2019, they struck a deal with Wetzel’s Pretzels’ former CEO Bill Phelps to begin franchising the Dave’s Hot Chicken concept.
The company has sold the rights to more than 1,000 franchise locations in the U.S., Middle East and Canada.
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“This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,” said Phelps, now Dave’s Hot Chicken’s CEO.
A view of a Dave’s Hot Chicken restaurant on February 26, 2025 in Rosemead, California. (Mario Tama/Getty Images / Getty Images)
Atlanta-based Roark, with $40 billion in assets under management, already has a foothold in the restaurant space after acquiring Arby’s and Culver’s, followed by Subway in 2024. It also invests in GoTo Foods and American fast-food restaurant franchise company Inspire Brands.
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Inspire Brands is the parent company of Arby’s, Dunkin’, Jimmy John’s, Sonic and Buffalo Wild Wings. GoTo Foods owns Auntie Anne’s, Carvel, Cinnabon and Jamba.