Gas up your appetite: RaceTrac buys Potbelly sandwich chain in $566M deal

Potbelly Corp., the beloved Chicago-based sandwich shop chain, has announced its sale to Atlanta-based RaceTrac Inc. for approximately $566 million, according to the Chicago Business Journal. The report states that a RaceTrac subsidiary called Hero Sub Inc. will acquire all the leftover shares of Potbelly at $17.12 per share as part of this agreement. This all-cash transaction reflects a 47% premium over Potbelly’s recent trading average, emphasizing the strategic value RaceTrac sees in the acquisition, says Chicago Business Journal.

Strategic expansion by Racetrac

RaceTrac, known for over 800 convenience stores across 14 states, sees this acquisition as a significant move into the fast-food sector, Axios reports. Potbelly, founded more than four decades ago in Chicago, has grown into a nationwide presence with more than 445 locations, the business shared in a press release. 

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“Our companies, combined, have over 130 years of experience delighting guests by providing them with welcoming smiles and a place to enjoy life’s everyday moments," said Natalie Morhous, CEO of RaceTrac, in Potbelly’s announcement. “We are proud of Potbelly’s legacy as a beloved neighborhood sandwich shop and are excited to expand our family of convenience-driven brands.” The acquisition is set to close in the fourth quarter of 2025, subject to regulatory approvals.

Preserving the unique appeal of Potbelly sandwich chain

According to Axios, Potbelly has always maintained its unique charm with its original shop's atmosphere, featuring wood interiors and localized decor. Offering signature sandwiches, soups, and hand-dipped shakes, the chain also announced it has a long-term goal of reaching 2,000 locations nationally. "This transaction fortifies our path while delivering immediate value to our shareholders," stated Bob Wright, CEO of Potbelly, as reported by Potbelly's press release.

While RaceTrac has no specific plans yet to integrate Potbelly sandwich chain’s menu into its convenience stores, Axios says, the merger presents potential for both brands to expand and collaborate on customer offerings. Bridging their capabilities in real estate, franchising, and food innovation, the collaboration sets the stage for future growth and enhanced customer experiences.