Arby's has bought the the sports bar chain Buffalo Wild Wings, but it didn't come cheap. The sandwich shop spent $2.9 billion on the beer and wing hangout — a 7 percent premium based on Monday's closing price. The deal makes Buffalo Wild Wings privately owned.
The folks at Arby's could have gotten Buffalo Wild Wings much cheaper just two weeks ago. The stock price was plummeting, and investors were pressuring the chain to make a deal like this. Many speculated that Buffalo Wild Wings would be hurt by the controversy surrounding the NFL this season, as football fans make up a lot of their business. Though spokespeople for the company said they showed no measurable loss from NFL protests and boycotts, the football league has seen a drop in ratings in general this year.
After rumors spread that there was a deal with Arby's on the table, the stock prices shot back up. Arby's paid $157 per share for their new acquisition.
Arby's itself is owned by Roark Capital, which also has partial ownership of Carvel, Jimmy John's, and Auntie Anne's.
2017 has seen a whole host of mergers in the restaurant industry. Earlier this year, a company called JAB — which owns Krispy Kreme and Peet's Coffee — acquired Panera. Just a couple of weeks ago, Panera picked up Au Bon Pain. Similarly, Restaurant Brands, which owns such culinary giants as Burger King, has recently added Popeyes Louisiana Kitchen, Olive Garden, and a few smaller chains to its roster.