RaceTrac Purchases Potbelly for $566 Million

The popular sandwich chain, Potbelly, is set to be acquired by the convenience-store giant RaceTrac in a transaction worth $566 million, according to an announcement made on Wednesday.

Anticipated to finalize in the last quarter of the year, news of the deal boosted Potbelly's stock by over 30%.

Originating from Chicago, Potbelly operates more than 445 eateries across the United States, including franchised branches, with an objective of expanding to 2,000 locations. RaceTrac, a family-run enterprise based in Atlanta, boasts over 800 convenience outlets across 14 states.

Bob Wright, the CEO of Potbelly, expressed in a statement: "RaceTrac's strategic direction and their dedication to excellence align seamlessly with our aim to offer customers delightful experiences with delicious food. We have been positioning Potbelly for rapid franchise-driven expansion in recent years, and this acquisition strengthens our trajectory while providing our shareholders with certain, immediate value."

This acquisition assigns a value of $17.12 to each Potbelly share, representing about a 47% increase over its price on Tuesday. Potbelly's stock has seen a rise of over 75% this year.

This marks RaceTrac's second major acquisition, following its earlier move to purchase Gulf Oil.