RaceTrac Acquires Potbelly Sandwich Works for $566 Million

RaceTrac, a convenience store chain based in Atlanta, has announced its acquisition of Potbelly Sandwich Works for approximately $566 million. The deal, which is expected to close in the fourth quarter of 2025, involves RaceTrac purchasing all outstanding shares of Potbelly at a price of $17.12 per share. This offer represents a 47% premium over Potbelly's 90-day volume-weighted average price as of September 9, 2025. Potbelly, founded in Chicago in 1977, currently operates 445 locations across the United States, with ambitions to expand to 2,000 stores.

RaceTrac agrees to acquire sandwich chain Potbelly for $566mRaceTrac Agrees to Acquire Potbelly Sandwich Shop Chain for $566 MillionPotbelly Joining RaceTrac In $566 Million Acquisition

The acquisition aligns with RaceTrac's strategy to diversify its offerings and expand its footprint in the food service sector. RaceTrac operates over 800 convenience stores in 14 states and manages approximately 1,200 Gulf-branded fueling locations. The addition of Potbelly is seen as a significant move to enhance RaceTrac's portfolio, which traditionally focuses on convenience retailing rather than restaurant operations.

RaceTrac Acquires Potbelly

Bob Wright, Potbelly's CEO, emphasized that the partnership with RaceTrac would unlock new opportunities for growth while maintaining the brand's commitment to the neighborhood sandwich shop experience. He stated, “We have positioned Potbelly for accelerated franchise-led growth in recent years, and this transaction fortifies our path while delivering certain and immediate value to our shareholders.”

Potbelly Joining RaceTrac In $566 Million AcquisitionRACETRAC TO ACQUIRE SANDWICH SHOP CONCEPT FOR $566MRaceTrac agrees to acquire sandwich chain Potbelly for $566m

RaceTrac's CEO and Chairman, Natalie Morhous, expressed enthusiasm about the acquisition, stating, “We are proud of Potbelly’s legacy as a beloved neighborhood sandwich shop and are excited to expand our family of convenience-driven brands.” She also welcomed Potbelly’s 5,200 team members and franchise partners into the RaceTrac family, highlighting the shared commitment to customer service.

Potbelly Joining RaceTrac In $566 Million AcquisitionRACETRAC TO ACQUIRE SANDWICH SHOP CONCEPT FOR $566MRaceTrac Acquires Potbelly

While the acquisition has been generally well-received, some industry experts note that it is uncommon for convenience store operators to acquire restaurant brands outright. This move could prompt other convenience store chains to consider similar acquisitions, potentially reshaping the competitive landscape in both sectors.

Reuters

There are no significant conflicting reports regarding the acquisition details; however, specifics about RaceTrac's plans for Potbelly's expansion into new markets, particularly Georgia, remain unclear. Currently, Potbelly has no locations in Georgia, and further information on potential store openings in this region has not been disclosed.

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• “With RaceTrac’s resources, we will unlock new opportunities for this incredible brand while staying true to the neighbourhood sandwich shop experience that makes Potbelly special.” — Bob Wright, President and CEO of Potbelly

RaceTrac agrees to acquire sandwich chain Potbelly for $566m

• “I’m pleased to welcome Potbelly’s more than 5,200 team members and franchise partners to the RaceTrac family. Together, we’ll serve guests in even more meaningful ways.” — Natalie Morhous, CEO and Chairman of the Board at RaceTrac

RaceTrac agrees to acquire sandwich chain Potbelly for $566m

This acquisition marks a pivotal moment for both RaceTrac and Potbelly, as they aim to leverage their combined strengths to enhance customer experiences and expand their reach in the competitive food service market.

Potbelly Joining RaceTrac In $566 Million Acquisition