RaceTrac to buy Potbelly for $566M

Core Insights - RaceTrac is acquiring Potbelly Corporation for $17.12 per share, totaling approximately $566 million, marking a significant investment in foodservice [9] - This acquisition is part of RaceTrac's strategy to diversify beyond traditional convenience store operations, following its previous acquisition of Gulf Oil [4][9] - Potbelly aims to expand its footprint to 2,000 locations, with current operations at around 445 and franchise commitments to reach 816 [5][6] Group 1 - The acquisition of Potbelly represents an unusual move for c-store retailers, indicating RaceTrac's commitment to enhancing its foodservice offerings [3] - RaceTrac operates over 800 convenience stores across 14 states and is evolving into a more diversified conglomerate [4] - Potbelly's board has unanimously recommended the acquisition, which values shares at 47% higher than the 90-trading-day volume-weighted average price as of September 9 [7] Group 2 - The deal is expected to close in the fourth quarter, and RaceTrac is also enhancing technology at its locations, including the search for a chief information officer [5][9] - Potbelly's leadership views this acquisition as a means to accelerate franchise-led growth and deliver immediate value to shareholders [6]