Dave’s Hot Chicken sold to Subway owner in $1 billion deal

Dave’s Hot Chicken said Monday it has been acquired by nan backstage equity patient Roark Capital successful a woody weighted astatine $1 billion.

Dave’s Hot Chicken sewage its commencement successful 2017 arsenic a popup successful a Los Angeles parking lot. It has grown exponentially since past and expects to extremity this twelvemonth pinch 400 restaurants worldwide. The marque specializes successful Nashville-style basking chicken.

Investors successful Dave’s Hot Chicken person included nan rapper Drake, who gives distant basking chickenhearted sliders every twelvemonth connected Oct. 24, his birthday.

Atlanta-based Roark specializes successful franchised businesses. It bought the Subway sandwich chain in 2023 and backs 2 holding companies that ain aggregate edifice chains: Inspire Brands, the genitor of Arby’s, Dunkin’, Jimmy John’s, Sonic and Buffalo Wild Wings; and GoTo Foods, which owns Auntie Anne’s, Carvel, Cinnabon and Jamba.

Dave’s Hot Chicken said its activity squad — including CEO Bill Phelps and nan 4 puerility friends who founded nan institution — will stay and proceed to lead paper innovation, nutrient quality, operations and marketing.

“Our full statement is excited astir nan fresh betwixt Dave’s Hot Chicken and Roark, and we’re looking guardant to continuing to rustle our guests’ minds and unlocking maturation and worth for our franchise partners,” Phelps said successful a statement.