Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

Buffalo Wild Wings shares soar on report of takeover bid

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/14/2017 | 10:30pm CET
The Buffalo Wild Wings restaurant in Superior, Colorado

Buffalo Wild Wings' shares rose nearly 26 percent in early trading on Tuesday, a day after a report said the company received a $2.3-billion takeover bid from private-equity firm Roark Capital Group.

Roark's offer of more than $150 per share was a premium of at least 28 percent to the fast-food chain's close on Monday.

Wedbush analysts on Tuesday raised their price target to $130 from $115 and called the offer realistic. Buffalo's management could view it favorably as the stock's current price presents limited scope for same-store sales growth and margin trajectory, they said in a client note.

Activist hedge fund Marcato Capital Management has been pressuring Buffalo Wild Wings to change its leadership and improve its restaurant operations.

The company's Chief Executive Sally Smith said she would retire by the end of the year after Marcato won a bitter proxy battle in June that put three of its directors on the chicken-wing restaurant's board.

Roark's takeover offer follows several other deals involving private equity firms buying restaurant chains.

In October, casual dining chain Ruby Tuesday was bought by NRD Capital for about $335 million, while Luxembourg-based JAB Holdings took popular U.S. food chains Panera Bread and Krispy Kreme Doughnuts private in the last two years.

Roark has stakes in other restaurants chains like Arby's and CKE Restaurants, the owner of Carl's Jr, and could be a credible buyer of Buffalo Wild Wings, Stifel analyst Chris O'Cull said in a note.

"Buffalo Wild Wings could be appealing to Roark because of the brand's dominant positioning among sports-bars, potential to improve company-owned restaurant performance with better execution, and stable base of franchise income", O'Cull wrote.

The Wall Street Journal first reported the news on Monday, citing people familiar with the matter.

(Reporting by Uday Sampath in Bengaluru; Editing by Martina D'Couto and Arun Koyyur)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
02:46p JOHNS HOPKINS HEALTH SYSTEM : What’s in Your Wheat? Johns Hopkins Scientists Piece Together Genome of Most Common Bread Wheat
02:46p MINISTRY OF FINANCE OF REPUBLIC OF INDIA : The Central Government appeals to the Industry Leaders to pass on the benefit of GST Rate reduction to the consumers as it is expected to encourage domestic demand and investment among others.
02:34p European markets power on after early German wobble
02:34p European markets power on after early German wobble
02:31p PRESIDENT OF INDIA : In assam; graces the closing ceremony of namami barak festival
02:31p IDAHO FARM BUREAU FEDERATION : Grain Storage Tight
02:26p UNIVERSITY OF LEICESTER : Prestigious grant powers research into revolutionary battery technology
02:21p TRANSPORT FOR LONDON : Hello London switches on new digital media channel across the LU network 20 Nov 2017
02:21p UNITE : Hammond urged to give public sector workers a generous pay rise 20 November 2017
02:21p UK DEPARTMENT FOR CULTURE MEDIA AND SPORT : GLD launches its own northern powerhouse
Latest news "Economy & Forex"
Advertisement