The Story:
According to a CNBC report, Roark Capital Group has made a bid offer of $150 per share to buy Buffalo Wild Wings.
Shares in the chicken wings chain surged nearly 28 percent after the news broke.
Important Because:
Rising chicken prices and slumping traffic have hurt Buffalo Wild Wings.
This Happened:
Activist investor Marcato Capital Management LP has been calling for greater franchising, margin increases, sales growth and even the replacement of the CEO.
Buffalo Wild Wings has already had to move away from its strategy of a majority of company-owned stores into a more capital-light franchise model.
After the proxy fight that concluded in June, CEO Sally Smith said that she would step down at the end of the year.
Marcato has added three of its four nominees to the board, including Marcato manager Mick McGuire.
The acquisition would make a good fit for Roark’s portfolio, alongside sandwich chain Arby’s. Earlier this year Arby’s made a bid for Popeye’s Louisiana Kitchen.
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