Dave’s Hot Chicken announced on Monday that it has been purchased by private equity firm Roark Capital in a transaction valued at $1 billion.
The brand began in 2017 as a popup in a Los Angeles parking lot and has since expanded rapidly. Dave’s Hot Chicken is expected to have around 400 restaurants worldwide by the end of this year, known for its Nashville-style hot chicken offerings.
Among its investors is rapper Drake, who celebrates his birthday on October 24 each year by giving away hot chicken sliders.
Roark Capital, based in Atlanta, specializes in franchised businesses. The firm acquired the Subway sandwich chain in 2023 and supports two major holding companies that own multiple restaurant brands: Inspire Brands—which includes 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 confirmed that its leadership team, including CEO Bill Phelps and the four childhood friends who founded the company, will stay on and 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.