Dave’s Hot Chicken just scored a $1 billion investment from Roark Capital to rapidly expand worldwide. Once a humble parking lot stand, the spicy chicken chain now plans to open over 155 new locations in 2025 alone.
Key Facts:
- Roark Capital acquired Dave’s Hot Chicken in a $1 billion deal.
- The chain currently has over 300 restaurants and expects to pass 400 by year’s end.
- Dave’s plans to open 155+ new locations globally in 2025.
- The brand began in 2017 with just $900 and a parking lot setup.
- Roark also owns major food brands like Arby’s, Subway, and Dunkin’ through Inspire Brands.
The Rest of The Story:
Dave’s Hot Chicken started with three friends, a dream, and just $900.
From selling spicy chicken in a Los Angeles parking lot in 2017, they quickly moved to their first restaurant and then struck a major franchising deal in 2019 with Bill Phelps, former CEO of Wetzel’s Pretzels.
That deal opened the door to widespread expansion.
Now, the company has sold the rights to more than 1,000 franchise locations across the U.S., Canada, and the Middle East.
Backed by Roark Capital’s $40 billion in assets, Dave’s is preparing for its next major leap—aiming to open over 155 new stores this year alone.
Roark’s deep restaurant portfolio, including Arby’s, Subway, and Dunkin’, gives the company a strong foundation to support Dave’s ambitions.
CEO Bill Phelps, now leading Dave’s Hot Chicken, called the journey “one of the great entrepreneurial stories of our time,” as the brand prepares to push into new markets and strengthen its national footprint.
Dave's Hot Chicken officially getting acquired by Roark Capital for ~$1 Billion 🚨
The franchisor turned $2M of capital into a $1B exit.
What started as a pop-up location in a parking lot in 2017, now has 300+ locations (with 700+ more coming).
Incredible outcome pic.twitter.com/NETjWWwIWu
— Pat Buckley (@TheFranDawg) June 2, 2025
Commentary:
In a fast food landscape marked by closures, layoffs, and shrinking margins, Dave’s Hot Chicken is a rare success story.
While chains like Red Lobster are shuttering locations and McDonald’s is raising prices to survive inflation, Dave’s is scaling up—aggressively.
Backed by Roark Capital’s deep industry connections and financial power, the brand is positioned for a breakout year.
This investment isn’t just a win for Dave’s; it’s a sign that private capital still sees value in bold, fast-moving operators who know how to build customer loyalty and replicate it quickly.
With more than 1,000 franchises already sold and hundreds more on the horizon, Dave’s is showing that the right mix of branding, flavor, and grit can cut through a tough market.
The Bottom Line:
Dave’s Hot Chicken’s $1 billion deal with Roark Capital signals one of the boldest expansion plays in the fast food sector this year.
The company’s rapid rise from humble beginnings to global ambitions is a case study in what’s still possible in today’s market.
With major financial backing and an aggressive growth plan, Dave’s is blazing a trail while others downsize.
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