Roark Capital, Subway owner, buys famous chicken chain in the U.S. for $1B deal and plans to open 155 locations in 2025
Subway remains the largest fast food chain in the U.S. but faces significant challenges, while its parent company, Roark Capital, invests $1 billion to acquire Dave’s Hot Chicken.
Roark Capital, parent company of Subway, has completed the acquisition of fried chicken brand Dave's Hot Chicken for $1 billion. The problem is that Subway, while still the largest fast-food chain in America, is trending downward with the closing of hundreds of stores.
Subway has dropped tremendously from its peak of over 27,000 stores and continues to dwindle downwards, with several years of closing stores via a disturbing trend starting in 2016. Reported by U.S. outlets, Dave's Hot Chicken has rapidly grown to 300 stores, but they will continue to open additional locations. In fact, in 2025, Dave's Hot Chicken intends to open 155 more stores.
ALSO SEE: Trump threatens tariffs on Apple and Mattel amid disputes over production and executive decisions
Subway owner buys Dave's Hot Chicken for $1B
The deal, announced on Monday, June 2, which establishes Roark Capital as one of the giants in the food industry. From now on, Dave's Hot Chicken joins the group, which already includes brands such as Subway, Dunkin', Buffalo Wild Wings, Arby's, Jimmy John’s, and Sonic, among other brands.
The chicken chain was founded in 2017 in a downtown Los Angeles parking lot, and within just 5 years, it has grown to operate more than 310 locations. Their Nashville-style spicy chicken concept caught the attention of figures like Drake and Michael Strahan, who decided to invest in the project.
Dave's Hot Chicken to open more than 155 locations in 2025
With over 1,000 franchise licenses sold, Dave's Hot Chicken is all set for large-scale expansion. This year, the brand plans to open over 155 new locations in the United States, Canada, and the Middle East.
Dave's CEO, Bill Phelps, stated that the entire organization is excited about this new phase with Roark. "We look forward to continuing to surprise our customers and generating value for our franchisees," he said in an official statement.
The purchase of Dave's Hot Chicken shows how Roark Capital is able to adapt to changing consumer preferences and keep pace with the market. In this context, the move "Subway owner buys chicken chain" becomes more than just news; it’s a key move in the fast-food industry.
