Dave’s Hot Chicken Nears Deal To Be Sold For $1 Billion
Dave’s Hot Chicken started as a humble stand serving food out of a parking lot in East LA. Now, the popular chain founded by four Angelenos with only $900, has just signed a deal with private equity firm Roark Capital for $1 billion. According to the Wall Street Journal, inside sources say that Roark was attracted to its steady royalty revenue and relatively low operating costs.
Roark Capital, based in Atlanta, GA, manages $38 billion in assets with a portfolio consisting of major brands like Arby’s, Baskin Robbins, Buffalo Wild Wings, Dunkin’, Culver’s, and Subway, to name a few. Known for its Nashville-style hot chicken, Dave’s Hot Chicken previously partnered with investment bank North Point to attract interest from private equity firms.
The chain has impressively capitalized on consumer demand for chicken in a climate where similar restaurant operators struggle with rising labor costs amid inflation. Dave’s Hot Chicken currently generates around $1 billion in annual sales, with more than 250 locations worldwide.
Founders Dave Kopushyan, Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan are majority owners of the company, which also has big-name investors like Samuel L. Jackson and rapper Drake.
