mynth
← DATABASE
02/2018

BUFFALO WILD WINGS acquired by ARBY’S RESTAURANT GROUP

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 3b - 100b USD

Context

Arby's Restaurant Group completed the acquisition of Buffalo Wild Wings and simultaneously launched Inspire Brands as a new multi-brand restaurant platform. Following closing, Buffalo Wild Wings continued to operate as an independent brand within the Inspire structure, with its management team remaining in place to support continuity and execution. The strategic rationale was to create a diversified restaurant company with scale across multiple occasions and channels, rather than relying on a single concept. Buffalo Wild Wings added a strong casual dining and sports bar brand to Arby's sandwich-led portfolio, giving Inspire exposure to a different customer segment, a more social dining format, and a brand with national awareness and meaningful growth potential. The deal also allowed the combined group to leverage shared expertise in franchising, marketing, digital capabilities, and procurement, while preserving the operating identity of each brand. At the time of launch, Inspire oversaw more than 4,600 company-owned and franchised restaurants across 14 countries, with combined 2017 global system sales above $7.6 billion.

BUFFALO WILD WINGS, which reported an EBITDA margin of in 2017, is valued in this transaction at an EV/EBITDA multiple of , representing a level the average currently observed in the Retail & Consumer sector (11.0x).

-> Deep-dive in Retail & Consumer market trends

Target

Buffalo Wild Wings, Inc. is a U.S.-based casual dining and sports bar chain founded in 1982 and headquartered in Minneapolis, Minnesota, United States. The company specializes in chicken wings, sauces, burgers, sandwiches, appetizers, and beer, serving guests in a sports-driven, high-energy environment built around live game viewing and social dining. Its core proposition combines made-to-order food with a bar-and-grill experience, and it has become one of the most recognizable wing brands in the U.S. restaurant market. Buffalo Wild Wings operated a large domestic system with both company-owned and franchised locations and generated meaningful national brand awareness through its sports marketing and game-day traffic. The chain’s business model relied on a mix of restaurant sales, franchise royalties, and advertising contributions, with a strong emphasis on guest experience and repeat visits.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2017
2016

Similar deals in Hospitality & Leisure

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
04/2018EQUISTONEKARAVELFRANCETour Operators
03/2018APOLLO GLOBAL MANAGEMENTQDOBA RESTAURANTUNITED STATESRestaurants / Chains
12/2017PERMIRALA PIADINERIAITALYRestaurants / Chains
11/2017LEONARD GREEN & PARTNERSPUREGYMUNITED STATESHospitality
10/2017TDR CAPITALBUFFALO GRILLFRANCERestaurants / Chains
09/2017FREEMAN SPOGLICAFE RIOUNITED STATESRestaurants / Chains
09/2017GLOBAL FRANCHISE GROUPROUND TABLE PIZZAUNITED STATESRestaurants / Chains
05/2017BLUEGEM CAPITAL PARTNERSBIG FERNANDFRANCERestaurants / Chains
04/2017BLUEGEM CAPITAL PARTNERSGRUPO RESTAURACIÓN LATERALSPAINRestaurants / Chains
04/2017JAB BEECHPANERA BREAD COMPANYUNITED STATESRestaurants / Chains

REFERENCES

Valuation range: EV 3b - 100b USD

EBITDA range: 250M - 500M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of BUFFALO WILD WINGS by ARBY’S RESTAURANT GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: buffalo wild wings

Acquirer: arby’s restaurant group