Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, October 5, 2018

Article Excerpt

SONIC CORP., $43.31, symbol SONC on Nasdaq, is a carhop-style burger chain that opened in 1953 as a root-beer stand in Shawnee, Oklahoma. It’s now the largest drive-in chain in the U.S., with 3,500 restaurants in 44 states. Carhops are waiters or waitresses who bring fast-food to customers in their cars at drive-in restaurants. On September 25, 2018, Sonic announced that it has agreed to a $2.3 billion acquisition by Inspire Brands Inc. Inspire is a privately owned multi-brand restaurant company with more than 4,700 Arby’s, Buffalo Wild Wings and Rusty Taco locations in the U.S. and internationally. The acquisition price is $43.50 in cash for each Sonic share. Sonic made itself more appealing to an acquirer over the last year through a number of successful measures. These included simplifying its menu, with a focus on value items. The company also shifted its marketing focus, and added new menu items. It did this to boost its appeal to women. Sonic believes women were…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.