Dave’s Hot Chicken is considering a sale that would bring the company’s valuation to nearly $1 billion.
The popular fast-food chain, founded by Dave Kopushyan, Arman Oganesyan, Tommy Rubenyan, and Gary Rubenyan, has locations in states such as Arizona, Massachusetts, California, Missouri, and Texas. In total, the chain has over 250 locations worldwide, per Reuters. It all started in 2017 with a $900 investment that led to the restaurant’s grand opening as a pop-up in an East Hollywood, CA, parking lot, its website mentions.
Its menu features chicken tenders and sliders with spice levels ranging from Lite Mild to Reaper. Sides include fries, mac and cheese, and kale slaw.
The company’s business model appears to be a success with each franchise earning on average $2.19 million in revenue (AUV) per year, according to Sharp Sheets. In total, its locations generate an estimated $1 billion in total annual sales.
Over the years, notable names have attached themselves to the venture, such as Samuel L. Jackson and Drake, who participated in its 2021 funding round, as previously reported by AFROTECH™. One year later, Dave’s Hot Chicken became the fastest-growing chain in the United States, according to Insider.
“I tried the food and it was amazing. After meeting the founders and hearing their story, I jumped at the opportunity to invest,” Drake said in a statement, per Bloomberg at the time.
Jackson reflected on his investment a couple of years later, and it was still fairing well.
“I never thought about going in the restaurant business, but I am an investor in Dave’s Hot Chicken,” Jackson said during an interview on “Sway In The Morning.” He added, “That’s working out.”
Looking ahead, it appears there may be major developments for Dave’s Hot Chicken. According to Reuters, the fast-casual restaurant is exploring a potential sale that would place its valuation at nearly $1 billion. It is currently collaborating with investment bank North Point during the sale process, a source aware of the matter revealed.
