Roark Capital Invests in L.A.-Based Dave’s Hot Chicken with $1 Billion Deal

Dave’s Hot Chicken, the rapidly expanding hot chicken tender eatery that began as an East Hollywood parking pop-up in 2017, announced a significant investment from Roark, a leading private equity firm. The strategic partnership marks the next major phase of growth for the restaurant, which plans to exceed 400 locations globally by the end of the year.

While details of the deal were not disclosed, Dave’s Hot Chicken CEO Bill Phelps said on CNBC that the $1 billion valuation is a fair estimate.

The company’s journey began with three childhood friends – chef Dave Kopushyan, Arman Oganesyan and Tommy Rubenyan – who launched their venture with just $900. Their early success, using portable fryers and folding tables, quickly led to their first brick-and-mortar location and then rapid expansion.

“This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story,” said Phelps. “Our entire organization is excited about the fit between Dave’s Hot Chicken and Roark, and we’re looking forward to continuing to blow our guests’ minds and unlocking growth and value for our franchise partners.”

The existing leadership team, including the founders, will continue in their roles, overseeing menu innovation, food quality, operations, marketing and the overall guest experience. In addition to rapid growth, the brand has a dominant social media presence with nearly six million followers.

North Point Mergers & Acquisitions served as the exclusive financial advisor.

Information was sourced from globalnewswire. For more information, contact Joshua Levitt, PR for Dave’s Hot Chicken, at josh@fikacollective.com.