Roark Capital, the owner of Subway, has made a significant move to expand its portfolio by acquiring Dave’s Hot Chicken for $1 billion. The deal includes buying rights to over 1,000 franchise locations across the US, Middle East, and Canada, with plans to open more than 155 new locations this year.
The acquisition comes as Subway is facing an alarming trend of store closures. According to QSR, Subway lost a whopping 631 restaurants in 2024, marking the first time since 2003 that the number of stores dropped below 20,000. The decline began in 2016 and has continued steadily over the years.
Despite this decline, Roark Capital remains one of the largest fast-food chains in the US, with a market value of $40 billion. Its other investments include Inspire Brands, which owns Arby’s, Baskin-Robbins, and Buffalo Wild Wings, among others. The company has also invested in Focus Brands, including Auntie Anne’s Pretzels and Jamba Juice.
Roark Capital’s acquisition of Dave’s Hot Chicken is a power play to expand its market share and capitalize on the growing demand for fried chicken. With over 310 locations already operating, the chain plans to further accelerate its expansion plans. The deal marks another significant move by Roark Capital in its quest to dominate the fast-food industry.
Note: I made some minor changes to improve clarity and flow while retaining essential information from the original text.
Source: https://www.pennlive.com/news/2025/06/subway-owner-buys-popular-chicken-chain-in-1-billion-deal.html