Roark Capital acquires Dave's Hot Chicken for $1 billion, plans rapid expansion
From Yahoo Finance: 2025-06-02 11:45:00
Dave’s Hot Chicken, a rapidly growing chain, is now valued at $1 billion after being acquired by Roark Capital. With 310 locations and plans for 155 more this year, the brand has sold rights for over 1,000 franchise locations globally. CEO Bill Phelps cites the brand’s success and strong team.
Roark Capital’s purchase of Dave’s Hot Chicken adds to its food brand portfolio. The firm, with $40 billion in assets, previously acquired Subway for $9.6 billion. Other investments include Inspire Brands and Focus Brands, which own various popular chains.
In the competitive fast-casual market, Dave’s Hot Chicken’s price point is comparable to rising chains like Raising Cane’s. Meanwhile, other chains like Cava and Shake Shack reported varying same-store sales growth in the first quarter, with Chipotle planning for significant expansion.
Amidst challenges in the restaurant industry, Dave’s Hot Chicken’s success and expansion plans stand out. With a dedicated social media following and backing from Roark Capital, the brand’s growth trajectory is promising. The acquisition signals further diversification for Roark Capital’s food brand portfolio. 1. The stock market saw a significant rise today, with the S&P 500 hitting a new record high. This surge was driven by positive economic data and strong corporate earnings reports.
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