November 14, 2017 / 1:29 PM / 9 months ago

Shares of Buffalo Wild Wings soar on bid reports

Nov 14 (Reuters) - Buffalo Wild Wings’ shares rose nearly 26 percent in premarket trading on Tuesday, a day after a report that the company received a $2.3 billion takeover bid from private-equity firm Roark Capital Group.

Roark made an offer of more than $150 per share, a premium of at least 28 percent to the fastfood chain’s close on Monday.

Analysts at Wedbush, which boosted their price target to $130 from $115, said the offer is realistic and that Buffalo’s management could view it favorably with the stock’s current price representing limited visibility into same-store sales growth and margin trajectory.

“We believe a premium is now warranted given the potential for upside to expectations if wing cost declines are sustained, but remains a discount to M&A multiples given uncertainty regarding any potential deal.”

The Wall Street Journal first reported the news on Monday, citing people familiar with the matter. (

Reporting by Uday Sampath in Bengaluru; Editing by Martina D'Couto

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below