Dec 4, 2017

Exclusive: Arby's plans to buy more than Buffalo Wild Wings

Illustration: Lazaro Gamio / Axios

Arby's last week made waves by agreeing to buy Buffalo Wild Wings, but Axios has learned that it has much greater acquisition plans. Specifically, its private equity owner is raising a $2 billion war-chest to buy additional restaurant chains, with plans to eventually bring the entire platform public.

Why it matters: Arby's was flailing when Roark Capital bought a majority stake from Wendy's back in 2011, but system-wide revenue hit $3.7 billion in 2016, according to a confidential document seen by Axios, and Roark is now on the hunt for other turnaround targets in the quick-serve, fast casual and casual dining markets.

Roark Capital disclosed in SEC documents that it is raising up to $2 billion for Roark Capital Partners II Sidecar LP, with over $758 million committed through early October. Axios has obtained a confidential pitch-deck for this fund, which shows the entire investment strategy is to purchase additional restaurant chains that would be added to the Arby's platform, with targets having annual EBITDA of between $50 million and $300 million. The overall group would be renamed Inspiring Restaurant Brands.

Buffalo Wild Wings is not specifically mentioned in the pitch-deck, but this fund is where Roark is getting the $783 million equity check it has committed toward the deal.

Neither Arby's nor Roark returned requests for comment.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 665,164 — Total deaths: 30,852 — Total recoveries: 140,225.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 3 a.m. ET: 124,665 — Total deaths: 2,191 — Total recoveries: 1,095.
  3. Federal government latest: President Trump announces new travel advisories for New York, New Jersey and Connecticut, but rules out quarantine enforcement. Per the CDC, residents of those states must now "refrain from non-essential domestic travel for 14 days," with the exception of critical infrastructure industry workers.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters who backed Trump's handling of the virus less than two weeks ago are balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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