Yesterday, Arby’s closed its $2.9-billion acquisition of Buffalo Wild Wings. The combined restaurant chains will be renamed Inspire Brands Inc., and according to its chief executive, the company is already seeking out future acquisitions. It could acquire as many as 10 multibillion-dollar chains in the coming years, said the executive.
Arby’s parent company, Roark Capital Group, has acquired several large restaurant chains in the past several years. Before the Buffalo Wild Wings acquisition, it most recently bought Jim ‘N Nick’s Bar-B-Q in 2017 and Jimmy John’s in 2016. Its other chains include Carvel, Cinnabon, Seattle’s Best, Auntie Anne’s, Carl’s Jr., Hardee’s, and Moe’s Southwest Grill. Since 2001, the company has acquired 60 franchise brands and 21 restaurant brands. Roark bought Arby’s from Wendy’s in 2011.
Several other restaurant chains have gone from public to private via acquisition by a private equity group. Among the companies that underwent this transition in 2017 were Panera Bread (bought by JAB Holding), Ruby Tuesday (bought by NRD Capital), and Bob Evans (bought by Golden Gate Capital). According to the Wall Street Journal, these acquisitions can help restaurants “weather the pressures of changing consumer preferences” without having to be accountable to shareholders. But privately held companies are less transparent, making it harder for consumers to understand their supply chains.