A FAMOUS fried chicken chain and well-known Popeyes rival has been scooped up by Subway in a massive $1 billion deal.
The largest fast food chain in the US has just flexed its muscles, and shown why it holds that title.
Fast food is a numbers game like most other competitive industries, and the chain with the biggest bucks often comes out on top.
Subway is currently the largest fast food chain in the United States, and it’s just proven this with a massive deal.
Famous fried chicken chain and Popeyes rival gets scooped up by Subway in massive $1 billion deal.
Penn Live reports that Roark Capital, which owns Subway, has just closed a $1 billion deal to buy Dave’s Hot Chicken.
Dave’s Hot Chicken currently runs about 310 locations, but expansion plans are being worked on.
To facilitate this, Dave’s Hot Chicken has gone to the fast food king for help.
The chain has sold the rights to more than 1,000 franchise locations across the US, Middle East and Canada.
Dave’s Hot Chicken plans to open more than 155 new locations this year, too.
Roark Capital bought Subway back in 2023 for $9.6 billion, and Yahoo estimates it has nearly $40 billion in assets.
Roark also has current investments in Investment Brands.
This includes Arby’s, Baskin Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s and Sonic.
SUBWAY PROBLEMS
Roark Capital, therefore, seemingly has the cash to splash on Dave’s Hot Chicken, but there are problems at home.
Subway might be the largest fast food chain in the country right now, but it is going through an alarming trend of its own.
Last year, the chain lost 61 restaurants, a continuation of a years-long decline.
Fast Food meal deals
Here are some of the current value meals offered by popular fast food joints.
Taco Bell’s $7 Luxe Cravings Box:
- Chalupa Supreme
- Beefy Five-Layer Burrito
- Double Stacked Taco
- Chips and nacho cheese sauce
- Medium drink
McDonald’s $5 Meal Deal:
- McDouble or McChicken sandwich
- Four-piece Chicken McNuggets
- Small fries
- Small soft drink
Wendy’s $5 Biggie Bag:
- Junior Bacon Cheeseburger or Crispy Chicken Sandwich
- Four-piece chicken nuggets
- Junior fries
- Small soft drink
Burger King’s $5 Your Way Meal:
- Whopper Junior, Chicken Junior, or Bacon Cheeseburger
- Fries
- Four-piece chicken nuggets
- Soft drink
Subway has been losing stores since 2016, when it lost 357 that byear.
Since then, it has lost 866 in 2017, 1,018 in 2018 and a peak of 1,601 in 2020.
Subway still has a lot to boast about in comparison to other chains, as it currently operates 19,502.
But compared to its own successes, this is the first time in 20 years that number has dropped below 20,000.
Subway‘s store count peak came in 2015 when it had more than 27,000 stores.
Rivals are still far away in the rear view mirror, with Starbucks in second with 16,935 and McDonald’s with 13,599 locations.
Subway will be hoping this $1 billion deal for Dave’s Hot Chicken will return hem to their former glory, even if only compared to itself.
