Inspire Brands may soon add Dunkin’ and Baskin Robbins to its impressive arsenal of brands.
According to The New York Times, the holding company of major chains like Buffalo Wild Wings and Arby’s is in talks to acquire Dunkin’ Brands in a $8.8 billion deal.
The deal would make Dunkin’ Brands a private company at $106.40 a share, the outlet noted.
While the deal hasn’t been formally announced, a spokesperson for Dunkin said: "Dunkin' Brands confirms that it has held preliminary discussions to be acquired by Inspire Brands. There is no certainty that any agreement will be reached. Neither group will comment further unless and until a transaction is agreed."
Following the confirmation, shares of Dunkin’ surged 15% on Monday.
The coronavirus pandemic has disrupted the usual routines of coffee drinkers, which has taken a toll on Dunkin’s sales.
While in-store sales in the U.S. have been down 18.7% in the second quarter, drive-thru sales are helping raise sales along with Dunkin’s creative items like the Ghost Pepper donut and its partnership with TikTok star Charli D’Amelio, per CNBC.
“We believe Dunkin’s comparatively healthy top line is reflected in the compelling takeout price,” Cowen analyst Andrew Charles wrote in a note to clients on Sunday.
Jefferies analyst Andy Barish said the deal is a great opportunity for Inspire, which acquired Jimmy John’s around the same time last year. Adding Dunkin’ to its portfolio would more than double the company’s restaurant total and widen the international footprint, the outlet noted.