Subway Parent Company Roark Capital Acquires Dave’s Hot Chicken for $1 Billion

Dave’s Hot Chicken said Monday it has been acquired by the private equity firm Roark Capital in a deal valued at $1 billion.

Dave’s Hot Chicken began as a popup in a Los Angeles parking lot in 2017. Since then, it has seen significant growth and is projected to have 400 restaurants globally by the end of this year. The brand is renowned for its Nashville-style hot chicken.

Investors in Dave’s Hot Chicken have included the rapper Drake, who gives away hot chicken sliders every year on Oct. 24, his birthday.

Roark, based in Atlanta, focuses on franchise-based businesses. In 2023, it acquired the Subway sandwich chain and supports two holding companies that own multiple restaurant brands: Inspire Brands, which operates Arby’s, Dunkin’, Jimmy John’s, Sonic, and Buffalo Wild Wings; and GoTo Foods, the owner of Auntie Anne’s, Carvel, Cinnabon, and Jamba.

Dave’s Hot Chicken announced that its leadership, including CEO Bill Phelps and the four founders who are longtime friends, will stay on to continue driving menu innovation, food quality, operations, and marketing.

“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,” Phelps said in a statement.