Potbelly Sandwich Shop on October 3, 2015 in Louisville, Kentucky.
Raymond Boyd
Sandwich shop chain Potbelly will be acquired by convenience store operator RaceTrac in a $566 million all-cash deal, Potbelly announced Wednesday.
The deal is expected to close in the fourth quarter of the year. Shares of Potbelly shot up more than 30% following the announcement.
The Chicago-based Potbelly has more than 445 stores in the U.S., including franchised locations, with a goal of reaching 2,000, according to the company. RaceTrac, a family owned company headquartered in Atlanta, operates more than 800 convenience stores across 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 said in a statement. “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 value Potbelly shares at $17.12 each, marking a roughly 47% premium to Potbelly’s price as of Tuesday. The company’s stock is up more than 75% this year.
Wednesday’s deal is RaceTrac’s second significant acquisition, after its 2023 deal to acquire Gulf Oil.
