RaceTrac will acquire Potbelly Corporation for $566 million in a cash deal that values the sandwich chain at $17.12 per share, according to AP. Potbelly, which operates 445 restaurants nationwide, said the acquisition will help it reach its target of 2,000 locations. RaceTrac, a family-owned convenience store and gas station operator with over 800 sites in 14 states, said it sees the deal as an opportunity to expand its brand portfolio. Investors had pushed for a sale, arguing Potbelly was undervalued, even after the company boosted sales through menu updates, digital growth, and new franchisees.Shares rose more than 31% to $16.99 Wednesday after the announcement. The purchase is expected to close in the fourth quarter.
