Buffalo Wild Wings explodes 28% on report that it has received a takeover offer
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- Private-equity firm Roark Capital Group has offered to buy Buffalo Wild Wings for $2.3 billion, according to The Wall Street Journal.
- The news on Monday sent Buffalo Wild Wings shares up by as much as 28% in after-hours trading.
Buffalo Wild Wings shares surged by as much as 28% in extended trading on Monday following a Wall Street Journal report that the company received a takeover offer.
The private-equity firm Roark Capital Group offered $2.3 billion for Buffalo Wild Wings, the WSJ's Dana Mattioli reported, citing people familiar with the matter. The restaurant chain was worth $1.8 billion as at the market close on Monday.
Barclays is reportedly working as Roark's financial adviser, while Goldman Sachs is working with Buffalo Wild Wings.
In June, the company announced that CEO Sally Smith would step down at the end of 2017 amid an activist campaign by the hedge fund Marcato Capital Management. Marcato had accused Buffalo Wild Wings of ripping off franchisees, and nominated three directors to its board.
Buffalo Wild Wings has been hurt by rising chicken-wing prices. Its cost of sales improved, however, after it ended a half-price wings Tuesday promotion and replaced it with a "buy-one, get-one" offer for boneless wings.
The company raised its forecast for full-year earnings when it reported third-quarter resultslate in October.
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