Latest news with #Phelps
Yahoo
23 minutes ago
- Business
- Yahoo
Popular fried chicken chain acquired by private equity firm in $1B deal
Roark Capital, the private equity firm that's been buying up established franchises, acquired Dave's Hot Chicken in a $1 billion deal that will fuel the chicken chain's restaurant expansion. Dave's Hot Chicken said the investment from Roark will aid the company as it enters its next phase of growth around the globe as it plans to open more than 155 locations this year. The company currently has over 300 locations, but it expects that figure to surpass 400 by the end of the year. Subway Joins Dunkin', Jimmy John's, Buffalo Wild Wings In Roark Capital's Stable The company was founded by three childhood friends in 2017. With only $900, the trio launched Dave's Hot Chicken in a parking lot using portable fryers and folding tables. Shortly after, they opened their first brick-and-mortar restaurant. In 2019, they struck a deal with Wetzel's Pretzels' former CEO Bill Phelps to begin franchising the Dave's Hot Chicken concept. Read On The Fox Business App The company has sold the rights to more than 1,000 franchise locations in the U.S., Middle East and Canada. Subway Agrees To Sale To Roark Capital, Ending Nearly 6 Decades Of Family Ownership "This is one of the great entrepreneurial journeys of our time, and now we begin the next chapter in the story," said Phelps, now Dave's Hot Chicken's CEO. Atlanta-based Roark, with $40 billion in assets under management, already has a foothold in the restaurant space after acquiring Arby's and Culver's, followed by Subway in 2024. It also invests in GoTo Foods and American fast-food restaurant franchise company Inspire Brands. Inspire Brands is the parent company of Arby's, Dunkin', Jimmy John's, Sonic and Buffalo Wild Wings. GoTo Foods owns Auntie Anne's, Carvel, Cinnabon and article source: Popular fried chicken chain acquired by private equity firm in $1B deal
Yahoo
a day ago
- General
- Yahoo
Volunteers reunite lost pets and families months after Hurricane Helene
RALEIGH, NC (WNCN) — As Hurricane Helene tore through western North Carolina last fall, floodwaters swallowed homes, climbed rooftops, and forced desperate families to flee with only the essentials. In the chaos, many had to make an impossible decision—leaving behind pets they loved as they escaped rising water. But in the weeks that followed, a small, determined group stepped in to help. Eric Phelps and his team at Sister Kitten Animal Rescue, a non-profit normally focused on trapping and caring for feral cats, quickly shifted their mission. 'Right after the storm hit, we were getting calls from people whose cats were missing,' Phelps said. 'We used the equipment and experience we already had to trap and recover animals that survived the flooding and try to get them back to their people.' One of those rescues involved a family in Swannanoa who had climbed into their attic with their pets as the water rose to the roofline. They were rescued in time, but in the scramble, one terrified cat bolted and couldn't be retrieved. Sister Kitten volunteers later found the cat, set food and water, and eventually trapped it safely, reuniting it with the family. In nearby Old Beacon Village, a Buncombe County 911 operator stayed on the line helping others even as she feared her own cats, Perry and Dickie, were trapped inside her flooded home. When she returned days later, paw prints in the mud gave her hope. 'We worked in that neighborhood for two months trying to recover those cats,' Phelps said. 'And while we were there, we ended up finding several other neighbors' cats too—people who had no idea their pets had even survived.' Since Hurricane Helene, Phelps estimates his team has reunited at least around 10 cats with their families and continues to care for a handful of others who remain unclaimed. They visit the area every single day, leaving food and water, tracking movement on game cameras, and trapping new arrivals to see if they belong to someone—or need veterinary care. One of those cats is 'Roscoe', a well-known community cat who was eventually trapped, vaccinated, and released back into the neighborhood. 'He still comes by,' Phelps said. 'We see him on the cameras pretty regularly.' So why does he keep doing it? 'If you don't come feed these cats, they're going to really struggle,' he said. 'There's no trash after a storm, no people generating food waste. They have nothing. We do it to keep them alive and to give people a chance to see their pets again.' Anyone who would like to assist Sister Kitten Animal Rescue can visit their website at and click the 'Donate' button at the top of the page. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CNBC
a day ago
- Business
- CNBC
Private equity firm Roark Capital invests in fast-growing restaurant chain Dave's Hot Chicken
Private equity firm Roark Capital has bought a majority stake in Dave's Hot Chicken, the company announced on Monday. Financial terms were not disclosed, but Dave's CEO Bill Phelps said on CNBC's "Squawk Box" that the reported $1 billion valuation for the deal is "pretty close." Since its founding in a Los Angeles parking lot in 2017, the fast-growing chicken chain has expanded to more than 300 locations by franchising its restaurants. Dave's U.S. sales soared 57% last year and surpassed $600 million, according to data from market research firm Technomic. Roark's investment follows a boom for chicken-focused restaurants, fueled by the so-called "Chicken Sandwich Wars" sparked by Popeyes in 2019. A wave of quickly expanding upstarts, like Dave's and Raising Cane's, have challenged legacy chains like Yum Brands' KFC, further boosting the category's growth. Dave's success also comes as younger consumers seek more heat in their food. The chain offers a diverse range for the chicken's "hotness" — from no spice to "Reaper," which requires the orderer to waive liability. The Reaper has sent at least one customer to the hospital; co-founder and Chief Business Officer Arman Oganesyan said the diner who signed the waiver offered a bite to her boyfriend, who couldn't handle the heat. But the restaurant's menu overall is small and focused on its oversized chicken tenders, which can also be inserted into a bun to make sliders. According to Oganesyan, its sliders are the perfect size to eat with one hand, leaving the other free to scroll on a phone. Phelps, who previously led Wetzel's Pretzels for 25 years, joined Dave's in 2019, less than two years after its founding. Co-founders Dave Kopushyan, Tommy Rubenyan and Oganesyan have stuck around and plan to continue in their roles after the deal closes. Along with Phelps, they're also holding onto their equity as minority stakeholders. "The timing was absolutely right," Phelps said. "We were at an inflection point where we could get an incredible valuation, and yet there was still significant upside for Roark, so that's the perfect place to be. "Roark has the ability to use their international supply chain to reduce the costs. And it's a better deal for the franchisees, but they also have the international ability to grow with all of their franchisees around the world, so we have an opportunity to blow this thing up very quickly," he added. Looking ahead, Dave's could reach up to 4,000 locations worldwide over the next 10 years, Phelps said. So far, Dave's has resisted conforming to industry practices, like focusing on speed of service, switching to cheaper ingredients or expanding its short menu. Sticking to many of its founders' original practices allowed the chain to keep the quality of its signature chicken high even as it opens new restaurants every day, Dave's COO and President Jim Bitticks said. Executives don't expect that to change under Roark's ownership either. "How did we get to that billion-dollar brand status? We leaned into what they created, rather than adjusting it or changing it based on conventional wisdom," Bitticks said. The deal marks Roark's first restaurant deal since the firm's blockbuster purchase of Subway for a reported $9.6 billion in 2023. Roark's portfolio also includes two holding companies, Inspire Brands and GoTo Foods, that collectively own more than a dozen restaurant brands, like Arby's, Dunkin' and Cinnabon. Roark has been keeping an eye on Dave's since the early days. "They came to our 15-store grand opening," Oganesyan said. "We'd see them at conferences all the time. They understood the potential of the brand. ... When the time came where we needed that new investor to come in, they were some of the only people on our minds. Early Dave's investors aren't the only ones making money from the deal. Masterminded by Phelps, the company plans to give dozens of its employees, from its support center team to restaurant assistant managers, significant bonuses. "He literally made 20 millionaires," Oganesyan said.
Yahoo
a day ago
- Business
- Yahoo
Subway-owner Roark Capital buys Dave's Hot Chicken for $1 billion with rapid expansion plans underway
Fast-growing chicken chain Dave's Hot Chicken is now owned by the same private equity firm behind Subway and Dunkin', with Roark Capital on Monday announcing a deal that values Dave's Hot Chicken at roughly $1 billion as it ramps up its global expansion plans. Currently, Dave's Hot Chicken operates 310 locations, but it has sold rights to more than 1,000 franchise locations across the US, Middle East, and Canada. It plans to open more than 155 restaurant locations this year. CEO Bill Phelps, formerly of Wetzel's Pretzels and Blaze Pizza, began working with the brand in 2019, investing roughly $2 million into Dave's Hot Chicken. The brand was started in 2017 by three friends in an East Hollywood parking lot with $900 in savings. "We timed it really well," Phelps said in an interview with CNBC on Monday. "The product is insane ... but then we have a team that built these other businesses, Wetzel's Pretzels and Blaze Pizza, ... [the] franchisees have done a great job building restaurants really, really fast." All the chosen franchisees owned other chains like Dunkin', Wetzel's Pretzels, or Blaze Pizza. The brand has a viral social media following with 1.8 million followers on Instagram and 3.6 million on TikTok. Phelps called it a "unicorn," outperforming its food chain peers as US consumer confidence remains challenged due to uncertainty surrounding tariffs. The purchase of Dave's Hot Chicken also comes as Roark Capital continues to bolster its portfolio of food brands. In August of 2023, Roark Capital bought sandwich chain Subway for about $9.6 billion, and its current investments include Inspire brands — which includes Arby's, Baskin Robbins, Buffalo Wild Wings, Dunkin', Jimmy John's, and Sonic — as well as Focus Brands, which owns Auntie Anne's Pretzels and Jamba Juice. Other investments include Moe's and Carl's Jr. Read more: The best credit cards to use at restaurants Roark Capital currently has $40 billion in assets under management. Dave's Hot Chicken's price point for a meal is above $10 in the New York market, comparable to the rising chicken chain Raising Cane's and other fast-casual players. In the first quarter, Mediterranean-inspired chain Cava (CAVA), which currently has 382 locations and went public in June 2023, reported same-store sales growth of 10.8% in the first quarter. Salad chain Sweetgreen (SG), which operates 251 locations in the US, saw same-store sales decline 3.1% in the first quarter. Sweetgreen has 251 locations and is only in the US. Burger chain Shake Shack (SHAK) — which has 589 locations worldwide, including 333 in the US, and is planning growth to 1,500 restaurants — saw same-store sales rise 0.2% in the first quarter. Chipotle (CMG), the market leader in the fast-casual category, operates 3,781 locations across the globe with plans to reach 7,000 restaurants in North America. The company saw same-store sales fall 0.4% in the first quarter. Mass-market fast food brands like McDonald's (MCD) and KFC, which is owned by Yum! Brands (YUM), reported same-store sales declines of 3.6% and 2% in the US in their most recent quarters, respectively. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
4 days ago
- Sport
Phelps and Jackson each hit 2 HRs, Georgia beats Binghamton 20-4 at Athens Regional
ATHENS, Ga. -- Tre Phelps and Dan Jackson each hit two of No. 7 national seed Georgia's five home runs on Friday and the Bulldogs beat Binghamton 20-4 in the opening game of the Athens Regional. Regional host Georgia (43-15) plays the winner between Oklahoma State and Duke on Saturday and No. 4 seed Binghamton (29-25) plays a loser-out game. Phelps finished with four hits, including a double, five RBIs and scored four runs and Jackson had six RBIs. Kolby Branch had four hits and drove in two and Nolan McCarthy added a double, home run and three RBIs. Leighton Finley (3-2) gave up two runs on four hits with seven strikeouts over 6 2/3 innings. Slate Alford led off the first with a double and, after Robbie Burnett flied out, scored when Phelps hit a home run. Jackson added a three-run shot to make it 5-0 going into the second. Matt Bolton and Zach Rogacki each hit an RBI single in the third to trim Binghamton's deficit to 5-2 but Jackson answered with another three-run homer off Brady Bouchard (3-5) in the home half.
