Buffalo Wild Wings explodes 28% on report that it has received a takeover offer

Buffalo Wild Wings surged by as much as 28% in extended trading on Monday following a Wall Street Journal report that the company received a buyout bid.

The private-equity firm Roark Capital Group offered $US2.3 billion for Buffalo Wild Wings, the WSJ’s Dana Mattioli reported, citing people familiar with the matter. The restaurant chain was worth $US1.8 billion as at the market close on Monday.

Barclays is reportedly working as Roark’s financial adviser, while Goldman Sachs is working with Buffalo Wild Wings.

Buffalo Wild Wings has been hurt by rising chicken-wing prices. Its cost of sales improved, however, after it ended a half-price wings Tuesday promotion and replaced it with a “buy-one, get-one” offer for boneless wings.

The company raised its forecast for full-year earnings when it reported third-quarter results late in October.

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