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Buffalo Wild Wings to Be Acquired by Arby's in Deal Worth About $2.44 Billion - 2nd Update
Buffalo Wild Wings Inc. said Tuesday it has agreed to be purchased by Arby's Restaurant Group Inc., taking the restaurant chain private for $2.44 billion in cash.
Arby's, which is controlled by Roark Capital Group Inc., will buy the Minneapolis-based restaurant chain for $157 a share. Including debt, the deal is worth about $2.9 billion.
STORIES OF INTEREST
Marcato Scores Mild Profit on Buffalo Wild Wings -- Market Talk
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11:53 ET - After a heated fight that changed over the board and led to the departure of the longtime CEO, Marcato Capital will be walking away with a profit on Buffalo Wild Wings thanks to today's sale to Arby's owner Roark Capital. But the deal, at $157 a share, is well below the highs Marcato expected Buffalo Wild Wings to make in future years, and only slightly above the cost for its special fund for the stake. Marcato disclosed its main fund had purchased 950,000 shares for $135.4M, or about $142.55 a share. That fund is making a 10% return, or $13.7M. The special-opportunity fund bought an additional 32,600 shares at $156.50, on average, so it's only making a 0.3% return. Marcato did trade in and out of some stocks and options, making a few additional million in the past year of the investment. Marcato at one point suggested the stock could hit $400 by 2021 if it was run right. That would be quite the return for Roark. Buffalo Wild Wings gains 6.3% to $155.70. (firstname.lastname@example.org; @DaveCBenoit)
Grain, Soybean Futures Under Pressure
Grain and soybean futures were mostly lower as a rising dollar and falling crude oil prices weighed down markets.
The WSJ Dollar Index--which measures the greenback against a basket of currencies--rose 0.2% to 86.61, helping make U.S. crops more expensive for global buyers. Lower crude oil prices, meanwhile, lured investors out of the commodity sector.
Hog Futures Rise, Cattle Fall
Hog futures bounced for a fourth-consecutive session on Tuesday as pork prices rose.
Wholesale pork prices rose 58 cents to $83.16 per 100 pounds as of midday, adding to gains from Monday. That was the highest price since early September.
Zumbrota, Minn., Hog Steady At $35.00 - Nov 28
Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $35.00 per hundredweight. Sow prices are steady. Sows weighing under 450 pounds are $36.00-$38.00, 400-450 pounds are at $36.00-$38.00, 450-500 pounds are $36.00-$38.00 and those over 500 pounds are $40.00-$42.00.
The day's total run is estimated at 250 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Nov 28
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Nov 28 +$45.80 +$ 46.18
Nov 27 +$46.76 +$ 45.01
Nov 24 +$46.18 +$ 45.72
* Based on Iowa State University's latest estimated cost of production.
A positive number indicates a processing margin above the cost of
production of the animals.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 111.2
(Percent of Year-Ago) Select 109.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell 94 cents per hundred pounds, to $208.63, according to the USDA. Select-grade prices fell 8 cents per hundred pounds, to $187.20. The total load count was 169. Wholesale pork prices rose 54 cents, to $81.88 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
November 28, 2017 17:40 ET (22:40 GMT)