Potbelly Sandwich Shop on October 3, 2015 in Louisville, Kentucky.
Raymond Boyd
Sandwich store chain Potbelly can be acquired by comfort retailer operator RaceTrac in a $566 million all-cash deal, Potbelly introduced Wednesday.
The deal is anticipated to shut within the fourth quarter of the yr. Shares of Potbelly shot up greater than 30% following the announcement.
The Chicago-based Potbelly has greater than 445 shops within the U.S., together with franchised areas, with a aim of reaching 2,000, in keeping with the corporate. RaceTrac, a household owned firm headquartered in Atlanta, operates greater than 800 comfort shops throughout 14 states.
“RaceTrac’s strategic vision including their commitment to quality align perfectly with our mission to delight customers with great food and good vibes,” Potbelly CEO Bob Wright stated in a press release. “We have positioned Potbelly for accelerated franchise-led growth in recent years, and this transaction fortifies our path while delivering certain and immediate value to our shareholders.”
The deal will worth Potbelly shares at $17.12 every, marking a roughly 47% premium to Potbelly’s value as of Tuesday. The firm’s inventory is up greater than 75% this yr.
Wednesday’s deal is RaceTrac’s second vital acquisition, after its 2023 deal to amass Gulf Oil.