Buffalo Wild Wings receives $2.3bn takeover bid from Roark Capital

By Laura Mullan
Restaurant chains Buffalo Wild Wings has reportedly received a takeover bid valued at more than US$2.3bn from private equity firm Roark Capital Group...

Restaurant chains Buffalo Wild Wings has reportedly received a takeover bid valued at more than US$2.3bn from private equity firm Roark Capital Group. 

Roaks offer exceeds US$150 on a per-share basis, said a source familiar with the matter. 

Shares surged nearly 28% after the supposed offer was first reported. 

SEE ALSO:

The reports of a private equity buyout of the chicken wing restaurant chain would come months after the company lost a proxy contest that resulted in the addition of three new directors to its board as well as the announcement that its CEO Sally Smith was to retire. 

Buffalo Wild Wings has been hurt by rising chicken-wing prices however, the company surprised Wall Street investors by beating third-quarter earnings expectations earlier this year.

Its financial forecast improved thanks to a mix of cost-saving initiatives and sales promotions.

“We are optimistic these actions will deliver an improving bottom line,” said Smith last month.

Roark Capital, a private equity firm, has a prominent stake in the restaurant sector, with investment in chains such as Arby’s, Cinnabon, Carvel and Auntie Anne’s.

The Minneapolis-based chain had a market value of US$2.6bn at the time of the offer, according to reports. 
 

Share

Featured Articles

McKinsey: Inflation Hurting European Grocery Sector

McKinsey report on State of Grocery Europe 2024 shows high prices are dampening consumer spending and margins are being squeezed by rising costs

Mars and FAO Food Safety Partnership Targets Mycotoxins

Mars & UN’s Food and Agriculture Organisation act on standards in food production, labelling and safety, with focus on mycotoxins in maize supply chain

Kraft Heinz Eyes $170mn US Government Net Zero Grant

Kraft Heinz in line for $170mn US Department of Energy grant to part-fund its clean energy projects and arrow in on net zero

Danone’s Global Strategic Partnerships Boost Growth

Food

Mondelez & Hershey facing Easter Cocoa Crisis

Retail

Starbucks on Carbon Neutral Coffee Journey

Sustainability