Notable news items and price action from the restaurant space as well as our fundamental view on select names.
- WEN has struck a deal with Roark Capital Group to sell its Arby’s chain. Under the terms of the deal, WEN will receive $130 million in cash and retain an 18.5% stake in the Arby’s business (a stake valued at $30 million). Roark will assume $190 million of Arby’s debt and the deal will generate a tax benefit of $80 million to Wendy’s. The total value of the deal is estimated to be $430.
- CPKI is being sued by an investor who is alleging that the acquisition of the company by an affiliate of Golden Gate Capital, at $18.50 per share, undervalued the company.
- SONC shares gained on accelerating volume on Friday. KONA underperformed, its shares sliding 3.1% on accelerating volume.