The parent company of QSRs Burger King and Tim Hortons, Restaurant Brands International Inc is all set to acquire Popeyes Louisiana Kitchen for $1.8 billion in cash.
Restaurant Brands International Inc, based out of Oakville, Ontario, is hoping to use its international reach to introduce Popeyes to diners globally, according to a Reuters report.
Popeyes is renowned in Canada for its delicious Louisiana-style fried chicken and buttermilk biscuits. The deal will get Popeyes shareholders $79.00 for each share – a 19.5 per cent premium to the stock’s Friday close.
Popeyes became one of the best-performing quick-service chains in the US under CEO Cheryl Bachelder over the past few years, notching same-store sales growth as well as location expansion.
Founded in New Orleans in 1972, Popeyes has 45 years of history and culinary tradition and is the franchisor and operator of Popeyes® restaurants. Today Popeyes is one of the world’s largest quick service restaurant chicken concepts with over 2,600 restaurants in the U.S. and 25 other countries around the world and its global footprint will complement RBI’s existing portfolio of over 20,000 restaurants in more than 100 countries and U.S. territories.
Following the closing of the transaction, Popeyes will continue to be managed independently in the U.S., while benefitting from the global scale and resources of RBI. Building on the momentum of recent years, RBI plans to continue developing the brand at an increasing pace in the U.S. and international markets in the years to come.
Chief Executive Officer of RBI, Daniel Schwartz, said in a press release: “Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world. With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong U.S. and international prospects for growth. 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. 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.”
Chief Executive Officer of Popeyes, Cheryl Bachelder, added in a press release: “I am proud of the superior results the Popeyes team has delivered in recent years; they have served all stakeholders well. As Popeyes enters its 45th year, its success reflects the amazing brand entrusted to us by founder Al Copeland, Sr. and the unique high trust partnership that we enjoy with our franchise owners. RBI has observed our success and seen the opportunity for exceptional future unit growth in the U.S. and around the world. The result is a transaction that delivers immediate and certain value to the Popeyes shareholders.”
RBI is one of the world’s largest quick service restaurant companies with more than $24 billion in system sales and over 20,000 restaurants. The company has a proven track record of growing its iconic brands by driving continued system-wide sales growth and expanding its restaurant footprint, while maintaining its focus on delivering great guest satisfaction and strong profitability for its franchise owners.