MINNEAPOLIS Buffalo Wild Wings Inc. said Friday it plans to acquire nine franchised restaurants in the Las Vegas market for $26 million in a deal expected to close in the fourth quarter. The parent company to the 440-unit namesake chain also announced a two-for-one stock split.
The company plans to fund the franchise purchase with available cash and marketable securities, or company stock that can be easily converted to cash. Average weekly sales at the nine units totaled about $55,000 during the past year, which is about 40 percent higher than the systemwide average, according to securities analyst Bryan Elliott of Raymond James & Associates.
Sally Smith, president and chief executive, commended current franchisee Bill Welter for building the brand in the Las Vegas market and added that he will stay with the company as a consultant.
The stock split will be in the form of a 100 percent stock dividend to shareholders of record as of June 1. The additional shares should be issued on or around June 15, and each shareholder will receive an additional share for every one owned.
Shares hit a record high for the year May 18 after the announcements, which were made before the market opened.
