$24 Billion Fast Food Burger King Owner Restaurant Brands International to Buy United States Largest Burger King Franchisee Carrols Restaurant Group for $1 Billion in Cash, To Spend $500 Million to Remodel Around 600 of 1,022 Locations & to Refranchise Most of the Locations to Smaller Owners
19th January 2024 | Hong Kong
Fast food Burger King owner Restaurant Brands International (18/1/24: $24 billion market value) has announced to buy United States largest Burger King franchisee Carrols Restaurant Group for $1 billion in cash, and will be spending $500 million to remodel around 600 of 1,022 locations and refranchise most of the locations to smaller owners thereafter. Founded in 1954, the Burger King brand is the second largest fast food hamburger chain in the world. Restaurant Brands International Inc. is one of the world’s largest quick service restaurant companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in more than 100 countries. RBI owns four of the world’s most prominent and iconic quick service restaurant brands – Tim Hortons, Burger King, Popeyes, and Firehouse Subs. Announcement: “Under the terms of the merger agreement, RBI will acquire all of Carrols issued and outstanding shares that are not already held by RBI or its affiliates for $9.55 per share in an all-cash transaction. This represents a premium of 23% to Carrols’ 30 trading-day volume-weighted average price as of January 12, 2024, and implies a total enterprise value of approximately $1.0 billion. RBI and its affiliates currently hold approximately 15% of Carrols outstanding equity. Carrols is the largest Burger King® franchisee in the United States today, operating 1,022 Burger King restaurants in 23 states that generated approximately $1.8 billion of system sales during the twelve-months ended September 30, 2023. Carrols also owns and operates 60 Popeyes® restaurants in six states. The transaction is part of Burger King’s Reclaim the Flame plan to accelerate sales growth and drive franchisee profitability. The transaction follows the brand’s initial $400 million investment announced in September 2022 to drive high quality remodels, improve operations, enhance marketing and support ongoing technology and digital priorities. Burger King expects to significantly accelerate Carrols’ current rate of remodels to bring the acquired portfolio to modern image over the next five years. To accomplish this, the team plans to invest approximately $500 million of capital, funded by Carrols’ operating cash flow, to remodel approximately 600 acquired restaurants that are not currently considered modern image. Carrols has a team of strong, experienced operators who, in partnership with Burger King’s operations teams, will operate the acquired restaurants. Burger King ultimately plans to refranchise the vast majority of the portfolio to new or existing smaller franchise operators who live in their local communities. Following refranchising the acquired restaurants, which we expect will be completed in five to seven years, Burger King will maintain a company restaurant portfolio of a couple of hundred restaurants for strategic innovation, training, and operator development purposes.”
” $24 Billion Fast Food Burger King Owner Restaurant Brands International to Buy United States Largest Burger King Franchisee Carrols Restaurant Group for $1 Billion in Cash, To Spend $500 Million to Remodel Around 600 of 1,022 Locations & to Refranchise Most of the Locations to Smaller Owners “
$24 Billion Fast Food Burger King Owner Restaurant Brands International to Buy United States Largest Burger King Franchisee Carrols Restaurant Group for $1 Billion in Cash, To Spend $500 Million to Remodel Around 600 of 1,022 Locations & to Refranchise Most of the Locations to Smaller Owners
About Burger King
Founded in 1954, the Burger King brand is the second largest fast food hamburger chain in the world. The original Home of the Whopper, the Burger King system operates more than 19,000 locations in more than 100 countries and U.S. territories. Almost 100 percent of Burger King restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades.
About Restaurant Brands International Inc.
Restaurant Brands International Inc. is one of the world’s largest quick service restaurant companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in more than 100 countries. RBI owns four of the world’s most prominent and iconic quick service restaurant brands – Tim Hortons®, Burger King®, Popeyes®, and Firehouse Subs®. These independently operated brands have been serving their respective guests, franchisees and communities for decades. Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to its food, the planet, and people and communities.
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