Dave's Hot Chicken explores sale, potential value at $1 billion - Reuters
Investing.com -- Dave's Hot Chicken, a restaurant chain with notable investor Drake, is considering a potential sale that could place the company's worth around $1 billion, including debt, Reuters reported, citing sources familiar with the matter on Tuesday.
Based in Pasadena, California, the fried-chicken chain is collaborating with North Point investment bank on the sale process. The ongoing process is reportedly piquing the interest of private equity firms, said the sources who requested anonymity due to the confidential nature of the discussions.
This potential sale comes as restaurant operators, including Dave's Hot Chicken, grapple with rising labor costs and look for ways to offset recent inflation. One strategy being employed is to increase menu prices.
Dave's Hot Chicken, renowned for its Nashville-style hot chicken, has successfully tapped into the increased consumer demand for chicken in recent years. The chain currently oversees more than 250 locations worldwide and generates approximately $1 billion in annual sales, the sources said.
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