Good morning. Dave's Hot Chicken, a fast-casual eatery, originated as a modest $900 pop-up in a Los Angeles parking lot back in 2017. Eight years on, the brand has grown to more than 345 outlets globally, a significant leap from its initial seven stores at the start of 2020. As of October. The company revealed a collaboration with Matternet to initiate its inaugural drone-delivery pilot in a Los Angeles suburban area, subsequent to its market entry. Joining the ranks of the ultra-rich.
Roark Capital, a private equity firm based in Atlanta specializing in franchised businesses, has been drawn to Dave's, a company renowned for its Nashville-style hot chicken. In 2023, the companies purchased Subway. Roark Capital Group manages two significant restaurant holding companies: Inspire Brands, which includes Dunkin', Buffalo Wild Wings, and Sonic, and GoTo Foods, comprising Auntie Anne's and Carvel. Roark acquired Dave's Hot Chicken for $1 billion last summer and projects the chain to expand to 400 locations this year.
Bill Phelps, a co-founder of Wetzel's, heads the company established by childhood acquaintances Dave Kopushyan, Arman Oganesyan, and Tommy Rubenyan. James McGehee has been the CEO of Pretzels since 2019. He became CFO in 2019, having first encountered the team via Wetzel's. McGehee shared, "My passion for food predates my career in the restaurant industry and accounting/finance, which began in 1993."
Scott Putman, the SVP of finance and a 2021 hire at Dave's, formerly held the position of corporate controller at Wetzel's Pretzels. Phelps is a familiar face to a number of Dave's team members. McGehee emphasized that the team's presence is deliberate, underscoring their strong work ethic, specialized skills, and alignment with the company culture.
McGehee stated that under Phelps's leadership, the firm enhanced its franchise network by choosing operators who possessed both extensive experience and a good cultural fit. Dave stated that the company's accelerated growth was achieved by integrating a distinctive brand, robust franchisees, and skilled management.
Technomic, a market research firm, reports that Dave's U.S. sales saw a 57% rise in 2024, exceeding $600 million. The menu offers chicken tenders, sliders, and bites, with cauliflower options available. You can choose from mild spice to the extreme "Reaper."
McGehee stated that the company's success stems from its consistent compound annual growth, which has averaged approximately 40% over the past five years, and its adaptable franchise model.
Gen Z's appetite for crispy chicken and intense flavors is fueling a significant trend. Dave's boasts a significant social media presence, with 2 million Instagram followers and more than 4 million TikTok followers, which helps to boost its Rapid growth. Notable figures such as Drake and Samuel L. Jackson also endorse the company. Putman collaborates with the marketing team in weekly meetings.
Navigating the M&A process
The merger-and-acquisition process presented a challenge for McGehee and Putman. According to McGehee, thirteen entities submitted bids, with five of those entities undergoing due diligence simultaneously.
"With five groups examining us, you're here constantly," Putman stated.
The pair ultimately arranged a mixed asset and stock transaction, which, according to Putman, resulted in $32 million in tax savings for shareholders. He stated that by customizing the strategy to benefit both California and out-of-state investors, the team made certain the financial gain was widely distributed.
The multi-billion dollar agreement with Roark represented more than just financial windfalls for company leaders and its creators. Putman noted that many of our staff members experienced events that significantly altered their lives. The brand Dave's team dedicated years to constructing saw its successful sale, with many benefiting from tangible recognition of their steadfastness and effort, he He commented. "It's a wonderful feeling to know that my colleagues are now enjoying an improved quality of life for their families and themselves, he continued. "This was something we strove for."
McGehee and Putman, who are also franchisees under Dave, connect with their fellow franchisees each year. The management team convened a face-to-face meeting with all franchisees in January.
The breakout sessions, offering more focused time with our franchise owners and operators, are what we appreciate most, according to McGehee. Stated.
Sheryl Estrada
[email protected]
Leaderboard
Prithvi (Prith) Gandhi was appointed SVP and CFO of Trex Company, Inc. (NYSE: TREX), a manufacturer of composite decking and railing, has appointed [Name] as its new [Title] effective October 6. Gandhi possesses more than 25 years of experience in financial leadership roles. He most recently held the position of EVP and CFO at Beacon Roofing Supply. During his earlier professional years, Gandhi spent eight years at Owens Corning. In this period, he occupied several advanced finance positions, one of which was serving as the Interim CFO from The 2019-2020 academic/fiscal year.
Danny Leung was promoted to CFO of MoneyHero Limited (Nasdaq: MNY), a platform for personal finance aggregation and comparison. Leung had been acting as the company's interim CFO since December 15, 2024. A seasoned finance and accounting leader boasting more than 20 years of broad expertise within fast-growing companies and global corporations, Leung came to MoneyHero in 2024 as the company's group director of finance, having previously worked with publicly traded companies.
Big Deal
The fintech IPO market experienced a resurgence in 2025, following a subdued period, with six financial technology firms having completed their public offerings to date. As per data from S&P Global Market Intelligence.
As of September In 2022, these six companies secured roughly $3.2 billion, achieving the highest annual figure in at least ten years and exceeding the $2.94 The research indicates that five fintech companies collectively raised a billion dollars through IPOs in 2020. Among the 2025 selections are Figure Technology Solutions Inc., Gemini Space Station Inc., Platinum Analytics Cayman Ltd., Bullish, and Chime Financial. And Aether Holdings Inc., Inc.
Going deeper
Moody's warns that "job growth in America was virtually non-existent last month," and any positions created were concentrated in three affluent states. Fortune's Eleanor Pringle.
Despite the absence of typical employment figures last week, markets are exhibiting strong upward momentum. Economic indicators from the Bureau of Labor Statistics (BLS) frequently provide crucial foresight into the economy's future path, yet investors are currently taking the Expecting the best as long as nothing negative occurs.
However, Moody's cautions that privately gathered data suggests a less optimistic scenario, characterizing new positions in the employment sector as 'meager.' Across the board, The latest BLS release shows America's labor market is weakening, with only 22,000 jobs added, a fact acknowledged from Wall Street to the Federal Reserve. The month of August is a factor, but the exact extent remains unclear.
Overheard
We've clearly reached a crucial juncture where leaders can develop AI, provided human values and intelligence form its core. "The foundation of AI has been laid; will it ultimately achieve its intended success?"
—Derya Matras, Meta's VP for EMEA, writes in a Fortune opinion piece.