Roark Capital, the Atlanta-based private equity firm known for its dominant presence in the restaurant sector, has acquired a majority stake in Dave’s Hot Chicken, one of the fastest-growing concepts in the US fast-casual space, according to a report by CNBC.
While financial terms of the transaction have not been disclosed, Dave’s CEO Bill Phelps confirmed in a CNBC interview that the deal values the business at close to $1bn. The investment marks Roark’s first major restaurant acquisition since its $9.6bn takeover of Subway in 2023, and further strengthens its position as a leading consolidator in the global foodservice sector.
Founded in 2017 in a Los Angeles parking lot, Dave’s has grown rapidly through a franchise-driven model, scaling to over 300 locations. According to Technomic data, US systemwide sales surged 57% in 2024, surpassing $600m.
Roark’s capital and operational expertise are expected to accelerate domestic and international expansion, with the chain targeting up to 4,000 global units over the next decade, according to Phelps.
“We were at an inflection point: a rare opportunity to realise an attractive valuation while still offering substantial upside for our new partner,” said Phelps. “Roark brings deep franchise experience, global supply chain capabilities, and a portfolio of synergies through Inspire Brands and GoTo Foods.”
Co-founders Arman Oganesyan, Dave Kopushyan, and Tommy and Gary Rubenyan – as well as Phelps – will retain a minority equity interest and continue in leadership roles post-deal.
The deal also yielded significant internal rewards with dozens of Dave’s employees – including restaurant managers and support staff – receiving meaningful bonus payouts. According to Oganesyan the transaction created “20 millionaires” within the organisation.
