The Pasadena, Calif.-based fried chicken chain could be acquired soon by the private equity firm that owns Inspire Brands, GoTo Foods, and Subway
Roark Capital — the private equity firm that owns Inspire Brands, GoTo Foods, and Subway — is allegedly in advanced talks to acquire Dave’s Hot Chicken for approximately $1 billion, according to The Wall Street Journal.
The acquisition of the 270-unit, Pasadena, Calif.-based fried chicken chain could be announced soon, assuming that the deal does not hit any bumps in the road, sources familiar with the matter said.
Dave’s Hot Chicken declined to comment on the alleged deal.
Rumors of the potential sale of the quickly growing fast-casual restaurant chain began earlier this month, with a report from Reuters that stated Dave’s was working with North Point to look for a potential buyer.
Dave’s Hot Chicken, which was founded as a popup concept in 2017, has ballooned over the past eight years, with nearly 100% sales growth and 76%-unit growth in 2023, alone, according to the most recent data from Technomic. Dave’s has been outperforming the rest of the trendy chicken segment, with its sales pacing at least three times ahead of other segment competitors like Wingstop and Raising Cane’s.
After a relatively quiet 2024 that was marked by more bankruptcies than acquisitions, this deal would be one of the first major restaurant industry acquisitions of 2025. Earlier this week, private-equity firm BroadPeak Capital bought Rōti Modern Mediterranean grill in a bankruptcy deal.
Atlanta-based Roark Capital owns Auntie Anne’s and Jamba parent company GoTo Foods, and Dunkin’ Brands/Arby’s parent company, Inspire Brands. Roark Capital was involved in one of the most high-profile acquisitions of 2024, when the private equity firm completed its acquisition of sandwich chain Subway in April 2024.
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