Fiesta Restaurant To Be Acquired By Authentic Restaurant Brands For $225M: Report
Portfolio Pulse from Shivani Kumaresan
Fiesta Restaurant Group Inc (NASDAQ:FRGI), owner of the Pollo Tropical restaurant chain, is reportedly being acquired by Authentic Restaurant Brands, a business unit of investment firm Garnett Station Partners, for $225 million. The deal represents an 8% premium to Fiesta's closing share price of $7.86. Fiesta recently reported an 8.4% increase in FY22 revenue to $387.4 million, despite a $14.6 million loss due to rising commodity and labor expenses.
August 07, 2023 | 10:20 am
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Fiesta Restaurant Group is being acquired by Authentic Restaurant Brands for $225 million. This could potentially boost the company's stock price in the short term due to the 8% premium on the deal.
Acquisitions often lead to a short-term increase in the stock price of the company being acquired, especially when the deal is at a premium to the current share price. In this case, the deal is at an 8% premium to Fiesta's closing share price, which could lead to a boost in the stock price.
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