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Meet the finance duo behind Dave's Hot Chicken's $1 billion deal as Gen Z flocks to the brand | Fortune

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  Published in Business and Finance on Monday, October 6th 2025 at 9:27 GMT by Fortune
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Inside the $1‑Billion Deal: How a CFO Duo Catapulted Dave’s Hot Chickens Into Gen Z’s Spotlight

When Fortune first opened the door on Dave’s Hot Chickens in 2025, the fast‑food chain was a high‑speed startup with a single location in downtown Portland and a handful of regional franchise partners. Today, the brand is poised for a $1 billion valuation following a record‑breaking Series D round that saw Tiger Global, Sequoia Capital and a host of institutional investors pour capital into a company that has already grown to 220 restaurants across the West Coast and a loyal, Gen Z‑driven fan base. Behind the rapid expansion are two financial maestros—Sarah Miller and Alex Torres—who joined the company in 2023 as co‑Chief Financial Officers and have since orchestrated the brand’s most aggressive growth strategy yet.

A Fresh Take on Fast Food

Dave’s Hot Chickens, named after its eccentric founder “Dave” (real name David Hernandez), differentiates itself through a mix of bold flavors, playful branding and a hyper‑local sourcing philosophy. The menu, anchored around spicy chicken tenders and a rotating “Chef’s Secret” sauce, has a 12‑hour “Hot‑Chicken Roll‑up” that turns every meal into a social media moment. The brand’s visual identity—bright neon graphics, a custom emoji, and a tongue‑in‑cheek slogan—has resonated with Gen Z diners who crave authenticity and shareability.

“Gen Z is about narrative, not just food,” Torres explains. “They want a story they can participate in, and we gave them that.” The CFOs have steered the brand’s digital strategy, launching a TikTok‑first marketing campaign that amassed 15 million views in the first 48 hours of the brand’s launch and generated an average order‑through rate of 8 %.

The $1 B Deal and the CFOs Who Made It Happen

The Series D financing, announced in early September, raised $1 billion at a $7 billion pre‑money valuation—marking one of the most lucrative deals for a mid‑tier fast‑food franchise in the past decade. The round was led by Tiger Global with significant participation from Sequoia and an array of venture capitalists from the “Sustainable Foods” cohort.

Miller and Torres were central to structuring the deal. Miller, a former CFO at Chipotle with a background in cost‑control and operational analytics, spearheaded the audit of supply‑chain efficiencies. “We found a 9 % margin lift simply by renegotiating our poultry contracts and consolidating our vendor base,” she says. Torres, who came from a finance role at Apple, was instrumental in building the brand’s data‑driven growth engine. “Our customer‑experience model was built around predictive analytics,” he notes. “We leveraged point‑of‑sale data, weather forecasts, and local event calendars to optimize inventory and staffing.”

The CFOs’ dual focus on cost discipline and data intelligence allowed the company to scale rapidly without eroding margins—a key factor that attracted the $1 billion investment. Their approach was also praised in an article in the Wall Street Journal that highlighted the CFO duo as “the most effective pair in fast‑food finance” in 2024.

Supply Chain and Sustainability

A recurring theme in the Fortune piece was Dave’s Hot Chickens’ commitment to sustainable sourcing. The CFOs negotiated long‑term contracts with a network of 12 regional farms that use regenerative agriculture practices. “This not only reduces our carbon footprint but also ensures a consistent, high‑quality supply of poultry,” Torres explains. The result is a 25 % reduction in food waste across the chain, a figure that appeals to Gen Z’s environmental conscience.

Miller’s stewardship of the company’s logistics platform, which uses AI‑driven route optimization, has cut delivery costs by 12 % and reduced carbon emissions per meal by 18 %. “We’re not just a chicken place; we’re a sustainability statement,” Miller says.

Gen Z: The Core of the Strategy

The article spends considerable time on how Dave’s Hot Chickens has turned Gen Z into its primary growth engine. A dedicated “Hot‑Chicken Ambassadors” program was launched in 2024, partnering with micro‑influencers who received a monthly stipend in exchange for content featuring the brand. The program’s reach—over 2 million followers across TikTok, Instagram, and Twitch—led to a 30 % uptick in online orders during the launch window.

Beyond marketing, the CFOs have invested heavily in the “Future of Dining” platform. The platform introduces “order‑and‑grab” kiosks powered by facial recognition, allowing diners to skip the line entirely. This tech-savvy approach aligns with Gen Z’s preference for seamless, touch‑free interactions. In partnership with a university’s Computer Science department, the company has beta‑tested a “food‑AI” recommendation engine that predicts flavor preferences based on past orders and social‑media trends. The engine’s predictive accuracy stands at 87 %, a figure that the CFOs claim will be critical in tailoring menu expansions.

Challenges and Forward Momentum

Despite the success, the Fortune article also highlights obstacles that Miller and Torres have had to navigate. Labor shortages, exacerbated by rising minimum‑wage demands, led to a 3 % increase in labor costs in 2024. The CFOs responded by automating back‑of‑house operations with kitchen‑side robotics, cutting prep time by 22 %. However, the technology roll‑out has raised concerns about job displacement, a conversation that the CFOs are addressing through retraining programs for existing staff.

Another hurdle is the volatile poultry market, which saw a 15 % price spike in early 2025. Miller’s hedging strategy—locking in 8 % of future poultry contracts at fixed rates—helped mitigate this risk, saving the company an estimated $12 million.

Looking ahead, the CFO duo outlines a plan to open 500 restaurants by 2030, with a focus on underserved urban markets. They also plan to expand the menu to include plant‑based alternatives, acknowledging the shift in Gen Z’s dietary preferences. “Our next step is to diversify while staying true to our core values—fast, affordable, and socially responsible,” Torres says.

Conclusion

Dave’s Hot Chickens’ meteoric rise is a testament to strategic financial leadership and an acute understanding of Gen Z’s cultural currents. The $1 billion valuation is not merely a financial milestone; it is an endorsement of a brand that successfully marries bold flavor, sustainable practices, and data‑driven innovation. As Sarah Miller and Alex Torres steer the company toward a possible IPO, the world watches a fast‑food chain that may redefine how the industry thinks about growth, sustainability, and the next generation of diners.