Arby’s parent company acquiring Sonic

["J"]

Arby's parent company, Inspire Brands, is acquiring burger chain Sonic.

Inspire Brands announced Tuesday that it was buying the burger brand for $2.3 billion including debt.

At $43.50 per share the acquisition will amount to $1.57 billion in cash. The deal represents a premium of roughly 19% per share versus Sonic's closing stock price on Monday.

Sonic — known for its burgers, quirky menu items, and extensive beverage options— is the largest drive-in chain in the US with more than 3,600 locations. The chain will continue to operate as an independent brand out of its Oklahoma City headquarters.

 

[Stump]

I worked at a Sonic when I was a youngster... couldn't get away with that these days. I was 9-10 years when I started, car hop and fountain all the way to cook. Paper hats back then were made of parchment

 

[Jackalope]

Arbys. We have the tots.

 

[giles]

He ain’t neva gonna leave da wayne agin...

 

["J"]

Arby’s is actually the only fast food that I’ve eaten in the last decade. I will eat bojangles biscuits while I’m at lake Norman on our annual fishing trip. But that’s about it for fast food.

 

[Isaacorps]

Arby’s is actually the only fast food that I’ve eaten in the last decade. I will eat bojangles biscuits while I’m at lake Norman on our annual fishing trip. But that’s about it for fast food.

Mmm, Bojangles

 

[hickslawns]

Nothing but big money meals for J I guess. Lol

Sounds like a poor acquisition on Arby's part. Stocks at all time high. They pay a 19% premium? What happens when the stocks market drops again and they lose another 10-20-30%? Hope they have a good turn around plan in place.

 

["J"]

Nothing but big money meals for J I guess. Lol

Sounds like a poor acquisition on Arby's part. Stocks at all time high. They pay a 19% premium? What happens when the stocks market drops again and they lose another 10-20-30%? Hope they have a good turn around plan in place.

Actually it’s a conglomerate with a bunch of companies under that umbrella....

Quality vs quantity Philip

 

[hickslawns]

Never overpay. Conglomerate or not. Then again, there could be more to it than we see in the article. Maybe the real estate values alone equal what they paid? Maybe Sonic stocks have been down for a long time and the 19% premium is closer to market value. I don't know. Just seems like there are a lot of over inflated valuations out there and overextended corporations. I'd hate to see them go the way of the Edsel. . .or Toys R Us. . .or Sears. . . Or whoever is next.

 

["J"]

Never overpay. Conglomerate or not. Then again, there could be more to it than we see in the article. Maybe the real estate values alone equal what they paid? Maybe Sonic stocks have been down for a long time and the 19% premium is closer to market value. I don't know. Just seems like there are a lot of over inflated valuations out there and overextended corporations. I'd hate to see them go the way of the Edsel. . .or Toys R Us. . .or Sears. . . Or whoever is next.

Or, it’s a way to save on their tax liability? I’m not a business owner or a tax guy but I’m sure they’re on their payroll too figure all that out....

 

[Sgt Fury]

The only sonic in my neighborhood stayed open for about two years then closed...there is an Arby’s right down the road from there though...and they have been open for as long as I can remember. Their roast beef and cheddar are good!

 

[hickslawns]

Or, it’s a way to save on their tax liability? I’m not a business owner or a tax guy but I’m sure they’re on their payroll too figure all that out....

Correct. There are many bigger scale tax games at this level. Most of us, myself included, don't even know how they work.