Roark Capital to acquire Dave’s Hot Chicken with US$1B investment

USA – Roark Capital has entered into an agreement to acquire fast-casual restaurant chain Dave’s Hot Chicken for US$1 billion.

The Los Angeles-based brand, which began as a parking lot pop-up in 2017 using portable fryers and folding tables, has experienced rapid growth in recent years.

By the end of 2024, Dave’s Hot Chicken expects to operate more than 400 outlets globally.

The deal will see the current leadership team, including the company’s founders, continue to manage day-to-day operations, with a focus on menu development, customer experience, food quality, and marketing.

Chief Executive Officer Bill Phelps described the acquisition as the beginning of a new phase for the company, noting that the team is optimistic about the future under Roark’s ownership.

The chain, known for its strong social media presence, said its digital strategy would not be affected by the transaction.

Currently, Dave’s Hot Chicken has close to 6 million followers across its platforms, with user-generated content attracting hundreds of millions of views.

Roark Capital, headquartered in Atlanta, specializes in investing in consumer-focused companies that operate under a franchise model.

The acquisition of Dave’s Hot Chicken is part of Roark’s broader strategy to expand its footprint in the foodservice industry.

Earlier this year, Roark completed a US$9.6 billion acquisition of Subway, further strengthening its hold on the global restaurant market.

Part of a Larger Food Brand Network

The investment firm’s portfolio already includes several major restaurant and snack brands across the United States and internationally.

These include Arby’s, Sonic Drive-In, Baskin-Robbins, Auntie Anne’s, Cinnabon, Carvel, Culver’s, Buffalo Wild Wings, and Dunkin’, among others.

With the addition of Dave’s Hot Chicken, Roark now owns or has stakes in more than a dozen chains that operate through franchise models.

While neither company disclosed specific plans for expansion, the move signals continued interest in scalable fast-casual concepts with high growth potential.

The transaction is expected to be completed in the coming weeks, subject to standard regulatory approvals.

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