Roark Capital, which owns Arby’s® Restaurants Group and also has significant stakes in Auntie Anne's, Carvel and Jimmy John's, is buying the casual dining giant Buffalo Wild Wings for $2.9 million.
Reports speculating that the deal was going to close a few weeks ago caused BWW's stock to increase, after a somewhat sluggish year for the sports-themed casual chain.
On Tuesday November 28, both the companies announced the definitive merger agreement where Arby’s® will be acquiring BWW at the price of $157 per share in cash.
Although BWW has struggled in the last year in both the stock market and same-store sales, which the CEO Sally Smith has attributed to the recent "historically high" chicken wing prices, the brand launched a campaign to combat that earlier in the year.
BWW pivoted its half-priced traditional wings on Tuesday to be a boneless wings promo. This was a risky move, but it paid off and resulted in "better-than-forecasted" same-store sales.
Even with the recent uncertainty of the casual dining market, Arby’s® is optimistic about its recent acquisition.
"Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” said Paul Brown, CEO of Arby’s® Restaurant Group, Inc in a press release. “We are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team. We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company.”
BWW was founded in 1982 and now has 1,250 locations in 10 countries. Arby’s®, which completed one of the most impressive rebrands in history, was founded in 1964 and has 3,000 restaurants in seven countries.
Smith believes that Arby’s® is the right partner to achieve aggressive growth plans in this tough market.
“We are excited about this merger and confident Arby’s represents an excellent partner for Buffalo Wild Wings,” said Smith, CEO of Buffalo Wild Wings in a press release. “This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented Team Members and franchisees. We are confident that the strength of our two industry-leading brands, under the sponsorship of Roark Capital – an experienced restaurant and food service investor – will enable us to capitalize on significant growth opportunities in the years ahead.”
Do you think that Arby’s® will also complete a successful marketing overhaul of BWW?
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