Popular chicken chain shares, massive expansion plan

Some may question if the chicken came before the egg or vice versa, but in this case, chicken is undoubtedly the correct answer.

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Today's consumers clearly prefer chicken, and food chains are starting to catch on to this trend, investing in these efforts to prevent their rivals from leaving them behind.

A growing chicken craze has emerged in the food industry, with major players like Chick-fil-A, Raising Cane's, McDonald's (MCD) , and Restaurant Brands International's (QSR) Burger King and Popeyes focusing on launching new chicken-based products to dominate the market and boost sales.

However, many weren't expecting an emerging chicken chain to quietly take over clients and successfully get them to consume its chicken rather than sticking with the decades-old giants.

Dave's Hot Chicken makes a major business move amid expansion plans.

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A new chicken chain is dominating the market at record speed

Founded in a California parking lot in 2017 by a small group of friends, Dave's Hot Chicken is an American fast-casual restaurant popular for its Nashville-style hot chicken.

This chicken chain quickly gained popularity among consumers. In only eight years, it has grown to over 270 locations across the U.S., Canada, the UK, and the Middle East, generating around $1 billion in annual sales.

Rumors began swirling in February that Dave's Hot Chicken was in talks with Roark Capital to be acquired for around $1 billion, as The Wall Street Journal reported.

This business move didn't seem far-fetched since it would align with Dave's Hot Chicken's ambitious expansion plan to reach over 400 restaurants worldwide by the end of 2025.

A major investment firm acquires Dave's Hot Chicken

After a few months of speculation, it was revealed that Roark Capital had sealed a $1 billion deal with Dave's Hot Chicken to acquire a majority stake in the chicken chain.

Neither party has publicly disclosed financial details about the deal. However, Dave's Hot Chicken's leadership team will continue operating the brand.

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This deal will allow Dave's Hot Chicken to expand its footprint into more nontraditional domestic units, such as airports, malls, and campuses, with the help of franchisees.

It will also give it the boost it needs to reach new markets, like Europe and Asia, which it sees great potential in and has wanted to do since opening its first location in the UK last year.

Roark Capital is a major player in the food industry and owns popular brands and companies like Arby's, Culver's, Sonic, Dunkin', and Subway.

This billionaire deal aims to accelerate Dave's Hot Chicken's growth, and with Roark Capital's extensive portfolio, the chicken chain looks to be in good hands.