Roark Capital buys Dave’s Hot Chicken for $1 billion
Roark Capital, the private equity powerhouse behind some of the biggest names in food service, has acquired a majority stake in Dave’s Hot Chicken, the rapidly expanding Nashville-style chicken brand that has captured the attention—and taste buds—of a new generation of diners. While the financial terms were not publicly disclosed, Dave’s CEO Bill Phelps confirmed the reported $1 billion valuation is “pretty close.”
A Parking Lot to Powerhouse Story
Founded in 2017 in a Los Angeles parking lot, Dave’s Hot Chicken has defied the odds and industry norms by growing to over 300 locations in just seven years. With a simple but bold menu, a cult-like fan base, and a franchise-driven expansion model, the brand generated more than $600 million in U.S. sales in 2024—an eye-popping 57% increase from the previous year.
The surge comes amid a continued boom in the chicken category, intensified by the so-called “Chicken Sandwich Wars” that began with Popeyes in 2019. Dave’s, along with other aggressive upstarts like Raising Cane’s, has challenged legacy chains like KFC by offering spicier, more flavorful fare that resonates with younger consumers seeking food with a kick—and a story.
What Roark Sees in Dave’s
Roark Capital, which recently made headlines with its $9.6 billion purchase of Subway, brings more than just capital to the table. Through its holdings in Inspire Brands and GoTo Foods, Roark controls a vast network of supply chains and a portfolio that includes Arby’s, Dunkin’, Cinnabon, and more.
According to Phelps, Roark’s ability to scale globally and streamline costs through its supply chain gives Dave’s a path to international growth without compromising quality. “They also have the international ability to grow with all of their franchisees around the world, so we have an opportunity to blow this thing up very quickly,” Phelps told CNBC.
The long-term vision? Up to 4,000 locations worldwide over the next decade.
Staying True to the Brand
Despite the new ownership, Dave’s isn’t expected to stray from its original playbook. The founders—Arman Oganesyan, Dave Kopushyan, and brothers Tommy and Gary Rubenyan—along with Phelps, will retain minority stakes and stay in their current roles.
“Our success has come from sticking to what we believed in—simple menu, quality ingredients, and extreme attention to detail,” said Jim Bitticks, Dave’s President and COO. “We didn’t chase trends like speeding up service or cutting food costs by compromising quality. Roark sees the value in that.”
This commitment is embodied in the chain’s infamous “Reaper” level spice, which is so hot it requires a waiver—and has sent at least one diner to the hospital. It’s a daring badge of honor for fans, and a symbol of the chain’s no-compromise ethos.
Windfall for Employees
In a rare and commendable move, the company also announced that dozens of employees—including restaurant assistant managers and support staff—will receive substantial bonuses from the deal. “He literally made 20 millionaires,” Oganesyan said of Phelps’ employee-focused approach.
The Road Ahead
Roark's majority investment represents not just a vote of confidence in Dave’s business model, but in its cultural relevance. With digital-native marketing, Instagrammable food, and spice levels that range from tame to tongue-scorching, Dave’s has successfully tapped into what younger diners crave: authenticity, experience, and heat.
As it prepares to enter its next phase, backed by one of the most influential firms in the food industry, Dave’s Hot Chicken appears poised not just to grow—but to redefine how bold flavor and brand authenticity can drive a billion-dollar business.
And they’re just getting started.
