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Buffalo Wild Wings soars on reported takeover offer

Nov 14, 2017, 19:51 IST

Markets Insider

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Buffalo Wild Wings' stock is exploding higher Tuesday after Roark Capital Group offered to buy the company for $2.3 billion, according to a report from the Wall Street Journal.

Shares are up 26.40% to $148.20 a share, which is close to the $150 per share offer.

Buffalo Wild Wings is down 1.84% this year, including the post-report jump. The company has been struggling amid rising chicken wing costs.

The hedge fund Marcato Capital Markets started an activist investing campaign against the company, which led to CEO Sally Smith announcing she would step down at the end of 2017. Marcato succeeded in appointing three directors to the company's board.

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Buffalo Wild Wings raised its full-year guidance and said it was killing its most popular promotion to save on costs in its third-quarter earnings report.

Read more about the take over deal from Roark.

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