Buffalo Wild Wings Shares Are Popping on Takeover Bid Report

The Royer Twins at Buffalo Wild Wings Times Square on September 30, 2016 in New York City. Bruce Glikas—FilmMagic

Buffalo Wild Wings bwld shares rose nearly 26% 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% to the fast food 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.

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“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.


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