>> Shares of Buffalo Wild Wings going bonkers after the casual dining chain reportedly gets a $2.3 billion buyout offer from a private equity firm. Investors licking their fingers Tuesday, sending the stock soaring 25%, its biggest one-day surge in more than eight years. Roark Capital Group has put a lucrative offer on the table, according to the Wall Street Journal, weeks before current CEO Sally Smith is set to retire.
She lost a bitter activist shareholder battle this summer. Even though store-wide sales were down last quarter, B-Dubs, as known by serious chicken wing aficionados, is still considered the premiere sports bar franchise. But shareholders have been clamoring for change with the stock lagging peers down 5% so far this year, as soaring chicken wing cost and slower foot traffic placed a drag on profits.
But Roark sees an opportunity to revitalize the brand, and is considered a credible suitor because it owns stakes and food operations like Arby's and CKE Restaurants. The owner of Carl's Jr. Private equity has been gobbling up restaurant and food establishments in recent years, including Ruby Tuesday, Krispy Kreme, and Panera Bread.