He started Dave’s Hot Chicken with $900: Years later, 19 employees became millionaires after a $1 billion deal

PC: LinkedIn For decades, stories about billion-dollar company sales have usually followed the same pattern. Founders become wealthy, investors celebrate massive returns, and employees often receive little more than praise for their hard work. Recently, Graham Walker has drawn attention after reportedly sharing $240 million with 540 employees following the sale of Fibrebond Corp. to Eaton in a $1.7 billion deal. Before finalising the sale, Walker insisted that 15% of the proceeds should go directly to employees, even though they did not own company shares. The average worker reportedly received around $443,000, creating life-changing financial opportunities for many families in the small town of Minden, Louisiana. Similarly, as per CNBC’s 2025 reports, Dave's Hot Chicken, a rapidly growing restaurant chain, reportedly turned 19 employees into millionaires after a major investment deal valued the company at nearly $1 billion. CEO Bill Phelps says the decision was intentional from the beginning. At a time when many workers feel disconnected from corporate success, the move has sparked conversations about loyalty, leadership, and how companies reward the people who help build them. The Dave’s Hot Chicken deal that reportedly made managers millionaires The major turning point came when private equity firm Roark Capital acquired a majority stake in Dave’s Hot Chicken in a deal reportedly worth close to $1 billion. Large investment deals like this are common in the restaurant industry, but what happened afterwards surprised many people. As reported by NRN, according to Bill Phelps, 19 employees became millionaires through the transaction. The company also reportedly rewarded corporate employees, store managers, and assistant managers with bonuses that were roughly equal to their yearly salaries. For many workers, it was likely a life-changing moment. “I had some investors who were like, ‘you’re giving away too much money, this isn’t right,’” he says. “They were absolutely right as investors to stand up for other investors. They have a fiduciary duty, but I have a duty to the people who created this business, and I was true to taking care of all of those stakeholders in this deal.” Phelps later explained that some investors were uncomfortable with how much money was being distributed to employees. From a financial perspective, investors often prioritise maximising profits and protecting returns for shareholders. How Dave’s Hot Chicken turned a $900 startup into a nationwide restaurant giant Dave’s Hot Chicken did not begin as a giant corporate brand. The company reportedly started in 2017 when three childhood friends pooled together just $900 to open a small chicken stand in a Los Angeles parking lot. At the time, few people could have predicted how quickly the business would grow. Customers were drawn to the restaurant’s spicy chicken, simple menu, and strong social media buzz. Within a few years, the brand expanded rapidly across the United States and became one of the most talked-about fast-food chains in the industry. The company’s growth accelerated after Bill Phelps became involved in 2019. Phelps already had extensive experience in the restaurant business after co-founding Wetzel's Pretzels and working with several other food brands. Along with an investor group, he acquired a stake in Dave’s Hot Chicken and helped franchise the business nationwide. Bill Phelps reportedly called his employees as ‘partners’ “I was told by one of my investors that I had no concept of what management compensation should look like,” Phelps says with a chuckle. “And he’s right, because I don’t look at them as management. I look at them as my partners in this journey, and I compensate them as partners in the journey.”According to Phelps, rewarding employees fairly was part of staying loyal to the people who contributed to Dave’s Hot Chicken from the beginning. Phelps has also said he does not believe in micromanaging employees because he trusts people to perform their jobs well.