Dave’s Hot Chicken may have found a buyer.
The Wall Street Journal reported Tuesday that Roark Capital is in advanced talks to acquire the Pasadena, California-based chain for about $1 billion, citing sources familiar with the deal.
Officials with Dave’s Hot Chicken declined to comment on the report. But earlier reports had indicated the fast-casual hot chicken chain had been working with investment bank North Point to run the process.
Atlanta-based Roark has a large restaurant portfolio that includes the sandwich chain Subway, which the investment firm picked up for more than $9 billion in 2023.
Roark, which focuses on franchise brands, also owns the multi-brand company GoTo Foods (Auntie Anne’s, Carvel, Schlotzsk’s and more), as well as Inspire Brands (Buffalo Wild Wings, Arby’s, Dunkin and more), along with CKE Restaurants (Hardee’s and Carl’s Jr.), Culver’s, Miller’s Ale House and Nothing Bundt Cakes.
Dave’s was launched in 2017 as a popup in a Los Angeles parking lot by four friends: Dave Kopushyan, brothers Tom and Gary Rubenyan and Arman Oganesyan.
In 2019, an investor group led by Wetzel’s Pretzel’s co-founder Bill Phelps, who also led an investment in Blaze Pizza, partnered with the founders to grow the brand, which now has more than 270 units.
Dave’s investors include the rapper and musician Drake, as well as singer/songwriter Usher, actor Samuel L. Jackson and other celebrities that have helped fan the social media flames for the brand, building awareness.
Sales are projected to reach $1 billion this year.
Mergers and acquisitions in the restaurant space are picking up, following the recent sale of Jersey Mike’s and Tropical Smoothie. Other concepts exploring a sale include Crumbl cookies and the burger chain Freddy’s.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.