Whitbread sold its Costa Coffee division to Coca Cola for $5.1 billion, the largest merger and acquisition deal in the restaurant industry in 2018. / Costa Coffee Whitbread sold its Costa Coffee division to Coca Cola for $5.1 billion, the largest merger and acquisition deal in the restaurant industry in 2018. / Costa Coffee
Chains

The Top Restaurant Mergers and Acquisitions Deals of 2018

Mergers and acquisitions activity in 2018 had a little bit of everything.

From quick-service restaurant (QSR) deals featuring Inspire Brands’ purchase of Sonic Drive-In, to activity in the delivery and reservation spaces with Resy buying Reserve, there was plenty for stakeholders to talk about. Some companies waited until year’s end to conclude business, as Dutch delivery company Takeaway.com snapped up Delivery Hero today.

The rolling up of coffee chains by bigger beverage brands including Nestle SA culminated in a big bet on Costa Coffee by Coca Cola. At $5.1 billion, it was the largest acquisition of the year.

But there were also some notable absentees this year. Restaurant Brands International, owner of Burger King, Tim Horton’s, and Popeye’s, went silent. Even more surprising is the lack of movement on the part of Dine Brands, which has publicly acknowledged a need to spice up its restaurant portfolio—already sporting Applebee’s and IHOP as subsidiaries.

The deals are listed in chronological order.

Top Restaurant M&A Deals of 2018

PurchasedBuyerSectorMonthValue
Fogo de ChaoRhone CapitalUpscale DiningFebruary$560 million
ZagatThe InfatuationPublishingMarchundisclosed
ResDiaryAccorHotelsReservationsAprilundisclosed
WaitrLandcadia Holdings, Inc.DeliveryMay$308 million
orderTalkUber EatsDeliveryMayundisclosed
Pret A MangerJAB Holding Co.QSRMay$2 billion
Barcelona Wine Bar and BartacoDel Frisco’s Restaurant GroupUpscale DiningJune$325 million
EventUpGatherEventsJuneundisclosed
LevelUpGrubhubDeliveryJuly$390 million
Costa CoffeeCoca-ColaCoffeeAugust$5.1 billion
Zoe’s KitchenCavaQSRAugust$300 million
SonicInspire BrandsQSRSeptember$2.3 billion
TapingoGrubhubDeliverySeptember$150 million
WagamamaRestaurant Group PlcCasual DiningOctober$456 million
BojanglesDurational Capital Management LP and The Jordan Company, L.PQSRNovember$594 million
ReserveResyReservationsNovemberundisclosed
BiteSquadWaitrDeliveryNovember$321.3 million
FoodyDirectGoldbellyDeliveryNovemberundisclosed
Smashburger*JollibeeQSRDecemberundisclosed
Delivery Hero (Germany only)Takeaway.comDeliveryDecember$1 billion

Source: News reports and public filings.

*Smashburger was bought in three installments: 45 percent in 2015 for and undisclosed amount; 40 percent in Feb 2018 for $100 million; and the remaining 15 percent for $10 million in December.

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