Buffalo Wild Wings (BWLD) is up 25% after the WSJ reported that Roark Capital has offered to acquire the company for more than $150/share, representing an enterprise value of over $2.3 billion.
Roark Capital specializes in the restaurant sector. They private equity firm has investments in Arby's, Auntie Annes, Carvel, Corner Bakery and Jimmy John's, among other retail brands.
Buffalo Wild Wings is sort of vulnerable to a takeover amid falling store traffic and rising wing costs.
In June, CEO Sally Smith announced she would retire by the end of the year, but a new CEO has yet to be found.
In July, the company missed second quarter estimates and lowered guidance as same-store sales fell 1.2%.
Last month, the company reported a huge earnings beat. Still, comparable store sales fell 2.3%, which was better than expected.
Meanwhile, activist hedge fund Marcato Capital has been pushing for changes, including more franchises, which would improve margins.
BWW's stock peaked over $200/share just over two years ago but was trading near a four-year low before the earnings beat last month.
A $150/share price would represent an enterprise value over EBITDA multiple of ~9x, which is well below the higher profile restaurant stocks like McDonald's (MCD), Dunkin' Brands (DNKN) and Starbucks (SBUX).