The owner of Burger King and Tim Hortons, Restaurant Brands International will be buying Popeyes Louisiana Kitchen for $1.8 Billion US or $79 per share. Restaurant Brands owns more than 20,000 restaurants around the world, and has been based in Oakville, Ont created in 2014. It is majority owned by the Brazilian private-equity firm 3G Capital.
Since that deal, Restaurant Brands has increased the footprint of both chains, striking deals with local operators to open additional Burger Kings around the world and expand Tim Hortons in the U.S., England and the Phillipines.
More of the same is expected now of Popeyes, should the deal close.
“As Popeyes becomes part of the RBI family, we believe we can deliver growth and opportunities for all of our stakeholders including our valued employees and franchisees,” CEO Daniel Schwartz said.
“We look forward to taking an already very strong brand, and accelerating its pace of growth and opening new restaurants in the U.S. and around the world.”
Bloomberg investigator Jennifer Bartashus said, Popeyes was particularly pined for by Restaurant Brands in light of the fact that, not at all like some other fast food chains, the company infers the greater part of its cash not from food sales, yet rather from the fees it gathers from franchisees. That is on account of 97% of Popeyes restaurants are franchised.
“The addition of a chicken-based chain may help Restaurant Brands compete more aggressively against Yum Brands’ Kentucky Fried Chicken,” Bartashus said, “and may help Popeyes accelerate new store development plans and catch up to peers in customer-facing technology.”
The offer price represents a 27% premium.