Roark Capital fuels Dave’s Hot Chicken growth with $1B acquisition

Roark Capital, the personal fairness firm that has collected established franchises, has taken over Dave’s Scorching Rooster in a $ 1 billion deal that can feed the growth of the Restaurant of the rooster chain.

Dave’s Scorching Rooster stated that Roark’s funding will assist the corporate whereas it enters its subsequent progress part all around the world, as a result of it’s planning to open greater than 155 places this 12 months.

The corporate at present has greater than 300 places, but it surely expects that determine to surpass on the finish of the 12 months 400.

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The corporate was based by three childhood buddies in 2017. With solely $ 900, the trio Dave’s Scorching Rooster launched in a car parking zone with transportable fryer and folding tables. Shortly thereafter they opened their first bodily restaurant.

A shot of Dave’s scorching rooster sandwiches. (Dave’s Scorching Rooster)

In 2019 they signed a cope with the previous CEO of Wetzel’s Pretzels Invoice Phelps to begin franching the recent rooster idea from Dave.

The corporate has offered the rights to greater than 1,000 franchiselocations within the US, the Midden -East and Canada.

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“This is without doubt one of the large entrepreneurial journeys of our time, and now we begin the following chapter within the story,” stated Phelps, now the CEO of Dave’s Scorching Rooster.

A view of a Dave’s Scorching Rooster Restaurant on February 26, 2025 in Rosemead, California. (Mario Tama / Getty Photographs / Getty photographs)

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Roark, based mostly in Atlanta, with $ 40 billion in property, already has a foothold within the restaurant house after buying Arby’s and Culver’s, adopted by Subway in 2024. Additionally it is investing in Goto Meals and American Fastfood Restaurant Franchise Firm Encourage manufacturers.

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Encourage Manufacturers is the mother or father firm of Arby’s, Dunkin ‘, Jimmy John’s, Sonic and Buffalo Wild Wings. Goto Meals has Aunt Anne’s, Carvel, Cinnabon and Jamba.