Economy

Arby's is Buying Buffalo Wild Wings for $2.9 Billion

Arby's is Buying Buffalo Wild Wings for $2.9 Billion

(NASDAQ:BWLD) was downgraded by analysts at UBS AG from a "buy" rating to a "neutral" rating in a research note issued on Thursday, www.benzinga.com reports. $142.64's average target is -2.57% below currents $146.4 stock price.

Several other institutional investors and hedge funds have also recently modified their holdings of BWLD.

Well, the idea of an Arby's/BDubs superstore may be a little bit closer to fruition after Arby's announced on Tuesday that it has reached a deal to acquire Buffalo Wild Wings for $2.4 billion in cash.

Following the close of the transaction, Buffalo Wild Wings will be a privately held subsidiary of Arby's and will continue to operate as an independent brand.

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Analysts await Buffalo Wild Wings (NASDAQ:BWLD) to report earnings on February, 6. The stock has "Hold" rating by Credit Suisse on Thursday, July 27. Barclays Capital maintained it with "Hold" rating and $195 target in Monday, September 21 report. Rmb Capital Mngmt Limited Liability has invested 0.31% in Buffalo Wild Wings (NASDAQ:BWLD). Buffalo Wild Wings had 119 analyst reports since July 23, 2015 according to SRatingsIntel. The company has a current ratio of 0.70, a quick ratio of 0.61 and a debt-to-equity ratio of 1.60. Analysts forecast EPS of $1.54, up exactly $0.67 or 77.01 % from 2014's $0.87 EPS. The company had revenue of $496.70 million during the quarter, compared to the consensus estimate of $500.97 million.

The companies are referring to this transaction as a merger, and Buffalo Wild Wings CEO Sally Smith said she believes this combination will help both entities "capitalize on significant growth opportunities" in the future. Public Employees Retirement System of OH now owns 765 shares of the restaurant operator's stock valued at $117,000 after buying an additional 75 shares in the last quarter. Finally, Gotham Asset Management LLC bought a new stake in Buffalo Wild Wings during the 2nd quarter valued at $5,092,000. Dimensional Fund Advisors LP raised its holdings in Buffalo Wild Wings by 3.1% during the 2nd quarter. Suntrust Banks Inc. increased its position in shares of Buffalo Wild Wings by 4.1% during the second quarter.

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The deal, which had been rumored for weeks, calls for Arby's to pay $157 per share in Buffalo Wild Wings stock.