Roark Capital acquires majority stake in Dave’s Hot Chicken in deal nearing $1bn
Roark Capital has acquired a majority stake in Dave’s Hot Chicken, valuing the rapidly growing US fast-casual chain at nearly $1bn, according to CNBC.
The deal marks Roark’s first major restaurant investment since its $9.6bn acquisition of Subway in 2023, further cementing the Atlanta-based firm’s leadership in the global foodservice sector.
Founded in 2017 in a Los Angeles parking lot, Dave’s has expanded to over 300 locations through a franchise-led model. The chain’s US systemwide sales grew 57% in 2024, surpassing $600m, according to Technomic data.
Roark’s investment will support Dave’s ambitious growth plans, with CEO Bill Phelps targeting up to 4,000 global locations over the next decade. Phelps said the transaction presented “a rare opportunity to realise an attractive valuation while still offering substantial upside for our new partner.” He praised Roark’s deep franchise expertise, global supply chain resources, and portfolio synergies through Inspire Brands and GoTo Foods.
Dave’s co-founders – Arman Oganesyan, Dave Kopushyan, and Tommy and Gary Rubenyan – as well as Phelps, will retain minority stakes and continue in leadership roles.
The deal also generated significant internal rewards, with dozens of Dave’s employees, including restaurant managers and support staff, receiving substantial bonus payouts. Oganesyan confirmed the transaction created “20 millionaires” within the organisation.