Core Insights - Dave's Hot Chicken has been acquired by Roark Capital for a valuation of $1 billion, selling 70% of its equity, which has significantly enriched its founders and investors [2][3][21] - The brand, founded in 2017 by four Armenian-American high school dropouts, has rapidly expanded to over 300 locations and is projected to achieve $620 million in system-wide sales by 2024 [3][10][21] Company Overview - Dave's Hot Chicken was established by Alen Oganesyan, Dave Kopushyan, and the Rubenyan brothers, Tommy and Gary, who initially sold Nashville-style hot chicken from a pop-up stand [3][5] - The brand gained popularity through social media, particularly TikTok, and has attracted celebrity investors, including rapper Drake [3][10][21] Financial Performance - The company has shown remarkable growth, with U.S. store count increasing from 7 in 2020 to 245 in 2024, representing a 43% growth rate [9] - System-wide sales have surged from $22 million in 2020 to an estimated $617 million in 2024, reflecting a 57% increase year-over-year [9][21] Expansion Strategy - The acquisition by Roark Capital is expected to facilitate further expansion, with plans to open over 1,000 franchise locations in the U.S., U.K., Middle East, and Canada over the next five years [21][22] - The management team, including the founders, intends to remain involved in operations post-acquisition, ensuring continuity in brand quality and customer experience [21][22] Market Position - Dave's Hot Chicken is positioned within the growing chicken restaurant segment, which has seen increased consumer demand, surpassing beef as the most popular meat in the U.S. since 2010 [10][11] - The brand's average unit sales are approximately $3 million, outperforming competitors like Popeyes, but still lagging behind Chick-Fil-A and Raising Cane's [18][19]