- Wells Fargo is out with a quick note on the "surprise" Sonic (SONC +18.4%) sale to Inspire Brands. The read-through is significant for shareholders of Jack In the Box (JACK +1.7%).
- "While the company’s car-hop format and heavy drinks/desserts sales mix is relatively unique among restaurant chains, we do think today’s news will provide a near-term bid for shares of smaller, regional burger concepts like JACK, as investors use this recent data point to anchor a justifiable valuation range for similar business models (i.e., highly-franchised, smaller, low unit growth, regional burger chains)," writes the Wells analysts team.
- Previously: Sonic goes private in $2.3B deal (Sept. 25)
- Previously: Sonic leads the restaurant sector higher (Sept. 25)