Food Retailers Surge After Burger King Acquisition (BKC, WEN, YUM, SBUX)

Food retailers are surging this afternoon, after it was announced that Burger King Holdings (NYSE: BKC) is going to be acquired by investment firm 3G Capital for $3.26 billion.

Wendy's Arby's Group (NYSE: WEN) is up 7%, to $4.41, Yum! Brands (NYSE: YUM) is up 2.5%, to $43.69, and Starbucks (NASDAQ: SBUX) is up 3.5%, to $24.52.

According to a Reuters report, "Including the debt that New-York based 3G will assume, the deal is worth about $4 billion, the company said on Thursday. The transaction is expected to close in the last three months of 2010." The $24 offer price is more than a 20% premium over Wednesday's closing stock price.

"It looks like a good price for Burger King shareholders. I don't anticipate that someone is going to come in higher," Telsey Advisory Group analyst Tom Forte told Reuters.

The PowerShares Dynamic Food & Beverage ETF (NYSE: PBJ), which tracks companies that are principally engaged in the manufacture, sale or distribution of food and beverage products, is up 1.1% this afternoon, to $15.99.