Dine Brands, Wendy’s Decline Unsolicited Buyout Offers, Plus More M&A News

Planet Fitness completed its $114.8 million acquisition of Be-Fit, a Portuguese fitness platform with 25 clubs and about 80,000 members. The deal advances Planet Fitness’ international growth strategy and establishes a scalable platform in an underpenetrated market. About $112 million will be paid upfront with about $2.8 million contingent on achievement of specific performance targets. Planet Fitness intends to rebrand the Be-Fit clubs and expects to refranchise the business.

Roto-Rooter Services acquired the largest independent Roto-Rooter franchisee for $60.6 million. The franchisee had annual revenue of $50 million to $55 million across California territories including northern San Diego, Palm Springs, Ventura, Bakersfield, Lancaster, Fresno, Monterey, Stockton, Modesto, Manteca and Sacramento. Roto-Rooter is a subsidiary of Cincinnati-based Chemed Corp. Chemed announced earlier this year it was considering divesting or spinning off the Roto-Rooter business. Historically, Roto-Rooter has run a combined model comprising company- and franchise-owned territories. After this and other 2026 acquisitions, it now maintains corporate ownership of territories comprising about 75 percent of the U.S. population.

The Flying Lyon, owned by John and Condit Lyon, acquired the final three company-owned pickleball clubs in the Dill Dinkers system as the founders focus on strengthening the company’s franchise system. In addition to the existing Maryland clubs in Columbia, North Bethesda and Rockville, The Flying Lyon secured development rights for the rest of Maryland. The original Columbia location opened in November 2022, serving as a proving ground for operations and player experience. The company said there’s potential for seven additional clubs in the next decade.

Dine Brands Global rejected a proposal from Arkhouse Management Co. and Cobblers Cove Capital to acquire all outstanding shares of the company’s common stock for $39 per share in cash. The offer was a 25.4 percent premium on the company’s $31.10 closing stock price the day of the offer. Arkhouse and Cobbers Cove have exposure to about 20 percent of Dine’s stock. Dine Brands adopted a stockholder rights plan, or what’s commonly known as a poison pill, aimed at keeping potential buyers from accumulating too many shares without otherwise paying a premium. The plan allows existing shareholders to buy shares at 50 percent discount if a passive investor acquires more than 20 percent or an activist investor acquires 10 percent of the company. Dine Brands owns Applebee’s, IHOP and Fuzzy’s Taco Shop and has recently reported strong results, particularly from co-branded IHOP and Applebee’s locations.

Wendy’s announced November 5 it rejected a proposal from Trian Fund Management, Flynn Group, BlueFive Capital and Sixth Street Partners to acquire the restaurant company for $1.4 billion, or $7.35 per share. The proposal represented a 20 percent premium over the October 27 closing stock price. Similar to Dine Brands, Wendy’s swallowed its own poison pill in the form of a limited-duration shareholder rights plan to protect itself from other takeover attempts. Under the plan, if an individual or group accumulates a 15 percent or greater stake without board approval, it would trigger a severe dilution of ownership.

Wendy’s has struggled in recent years and the company announced in an August earnings call that it closed 289 U.S. locations in the first half of 2026. CEO Bob Wright, who returned to Wendy’s in May from Potbelly, has said the company needs to focus on more profitable locations. One of its largest franchisees, Meritage Hospitality Group, filed for Chapter 11 bankruptcy protection in September. Wendy’s has reported six straight quarters of same-store sales declines, but the committee reviewing the offer indicated the proposal does not reflect the value it expects to be created through its “Dave’s Way” rejuvenation plan, which is focused on growing customer traffic and market share while strengthening restaurant profitability.

Craveworthy Brands—the parent of brands like Big Chicken, Wing It On, Gregorys Coffee and Dirty Dough—will acquire Papa Gino's Pizzeria, which is plans to co-brand with franchise Wing It On. The acquisition adds more than 160 restaurants to Craveworthy's portfolio. The deal is expected close by the end of the year. According to Craveworthy's announcement, the co-branding strategy will grow Wing It On's unit count from 45 to more than 145. Papa Gino's doesn't franchise.

Unbridled Capital provided sell-side advisory services on the sale of 11 Taco Bell restaurants in the Southeast U.S. It’s the fourth Taco Bell transaction Unbridled has been involved with in 2026. Buyer and seller information were not disclosed, nor were terms of the deal.

Swig's backer, Savory Fund, closed on Savory Fund III at $201.5 million.

Savory Fund closed on Savory Fund III at $201.5 million, exceeding its $200 million target. The private equity fund backing the growth of franchises such as Swig and Houston TX Hot Chicken drew a mix of returning and new limited partners, including some of the country’s leading financial institutions. Fund III continues Savory’s strategy of investing in profitable, emerging, founder-led restaurant concepts and pairing capital with a full operating platform led by CEO Clay Dover. Fund III will include eight or nine portfolio companies across the quick-service, fast-casual and casual dining sectors. Four investments, representing 35 percent of the capital, are in place: South Block, a better-for-you acai and smoothie brand expanding beyond its home market of Washington, D.C.; Bonrue Bakery, a European-style patisserie with a Utah following; Hawkers Asian Street Food; and Zao Asian Grill, a fast-casual restaurant posting nearly 20 percent same-store sales growth.

Prime QSR—an affiliate of CMG Companies, a franchise organization operating in more than 35 states—acquired a number of Arby’s restaurants across Alabama, Florida, Georgia and South Carolina. Citizens M&A Advisory served as the exclusive financial adviser to Arby’s parent company Inspire Brands on the sale. UMB Bank was the lead arranger, providing the financing for the transaction. The sale comes at a time when M&A activity as a whole is down, David Stiles, Citizens managing director, told the Restaurant Finance Monitor. “The Fed is signaling a couple more interest rate hikes, and that may change buyers’ thought processes in making acquisitions,” he said. “Plus, it could reveal a downward pressure on multiples.” Coupled with some brands not delivering on guest count and traffic, “it makes it difficult to transact. For brands that are demonstrating guest count and traffic improvement—good overall results—I think it is still a good time to explore sale options.”

Jersey Mike’s franchisee Orchard Jersey, owned by Peter Braun, secured a $17.2 million credit facility from Huntington National Bank comprising an $8.3 million senior secured enterprise term loan, a $6.8 million development line of credit and a $2.1 million acquisition line of credit. According to the Restaurant Finance Monitor, Orchard Jersey operates 13 Jersey Mike’s stores in the greater Seattle area. The company is acquiring one restaurant and intends to develop 15 additional Jersey Mike’s units over the next five years. Auspex Capital acted as financial adviser and debt placement agent to Orchard Jersey for the transaction.

Harkrishan Sahi and Harneet Jawanda bought the Mr. Gatti’s restaurant in Martinsville, Indiana. The husband-and-wife duo plans a refresh of the restaurant, which has been open for more than 40 years under previous owners Ray and Paulette Quinn. Ray Quinn died in February 2023. One month later, a tornado caused extensive damage to the restaurant. Paulette chose to rebuild to honor her husband and now chose to sell.

Mosquito Authority and Pest Authority of Hickory, a franchisee of Charlotte-based Main Line Brands, acquired Quality Control Inc., a locally owned pest control company in Statesville, North Carolina. Steve Dowdle has owned and operated Quality Control since 2017, according to Pest Management Professional. He is retiring after 46 years in the industry.

ServiceMaster Restoration Alliance of Tacoma, which serves six counties across western Washington, acquired ServiceMaster Total Cleaning Service of Redmond, Washington. Terms were not disclosed. The acquired operation will do business as ServiceMaster Restore of Kirkland. It provides an eastside base and expands the parent company’s ability to serve residential and commercial customers across King County.

Tony Baron acquired the Southwest Ohio Pet Butler franchise from Todd Figgins and RJ McKay. The territory serves customers throughout the Dayton and Cincinnati, Ohio, regions with pet waste removal and care services. Baron, a customer of Pet Butler, is transitioning from a 20-plus year corporate career into business ownership.