{"id":52533,"date":"2017-11-15T07:37:43","date_gmt":"2017-11-15T07:37:43","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=52533"},"modified":"2017-11-15T07:37:43","modified_gmt":"2017-11-15T07:37:43","slug":"buffalo-wild-wings-shares-soar-on-report-of-takeover-bid","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/buffalo-wild-wings-shares-soar-on-report-of-takeover-bid.html","title":{"rendered":"Buffalo Wild Wings shares soar on report of takeover bid"},"content":{"rendered":"

Buffalo Wild Wings shares soar on report of takeover bid<\/span><\/strong><\/span><\/h2>\n

Buffalo Wild Wings shares soar on report of takeover bid: Buffalo Wild Wings\u2019 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.<\/span><\/p>\n

Roark\u2019s offer of more than $150 per share was a premium of at least 28 percent to the fast-food chain\u2019s close on Monday.<\/span><\/p>\n

Wedbush analysts on Tuesday raised their price target to $130 from $115 and called the offer realistic. Buffalo\u2019s management could view it favorably as the stock\u2019s current price presents limited scope for same-store sales growth and margin trajectory, they said in a client note.<\/span><\/p>\n

Activist hedge fund Marcato Capital Management has been pressuring Buffalo Wild Wings to change its leadership and improve its restaurant operations.<\/span><\/p>\n

The company\u2019s 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\u2019s board.<\/span><\/p>\n

Roark\u2019s takeover offer follows several other deals involving private equity firms buying restaurant chains.<\/span><\/p>\n

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.<\/span><\/p>\n

Roark has stakes in other restaurants chains like Arby\u2019s and CKE Restaurants, the owner of Carl\u2019s Jr, and could be a credible buyer of Buffalo Wild Wings, Stifel analyst Chris O\u2018Cull said in a note.<\/span><\/p>\n

\u201cBuffalo Wild Wings could be appealing to Roark because of the brand\u2019s dominant positioning among sports-bars, potential to improve company-owned restaurant performance with better execution, and stable base of franchise income\u201d, O\u2018Cull wrote.<\/span><\/p>\n

The Wall Street Journal first reported the news on Monday, citing people familiar with the matter.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-buffalo-wild-stocks\/buffalo-wild-wings-shares-soar-on-report-of-takeover-bid-idUSKBN1DE24Q<\/span><\/p>\n

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