Buffalo Wild Wings will fork out $160 million to buy 41 restaurants in the southwest U.S. and Hawaii.
The Business Journal reports Golden Valley-based "wings, beer and sports" chain has exercised its right to snap up 38 existing "B-Dubs" locations from six franchisees across Texas, New Mexico and Hawaii – and an additional three that are under construction in New Mexico and Hawaii.
"We believe that the acquisition of these Buffalo Wild Wings locations will provide our shareholders with additional long-term net earnings growth," President and CEO Sally Smith said in a news release. "We are excited to acquire these well-run locations."
It is the latest move to expand what has become a wildly successful franchise, recently posting first quarter revenue growth of $440.6 million – a rise of almost 20 percent – as well as a 2.6 percent increase in net profits.
The company, which was founded in Ohio in 1982, has around 1,080 locations across the United States, Canada, Puerto Rico and the Philippines.
The research website Zacks notes its decision to buy the 41 franchised locations fits with the organization's focus on "company-owned restaurants," which allows it to have control over operations and keep the profits.
"The strong growth witnessed at these franchised units makes them a lucrative acquisition target," Zacks said. "Hence, the deal is a positive in an industry that depends largely on franchising."
Nation's Restaurant News reports the deal will mean Buffalo Wild Wings will own more than 500 of its 1,080 locations.