Restaurant Brands International announced on October 29 that it is purchasing Carrols Restaurant Group for an estimated cost of around $1 billion, one of the leading franchisees of Burger King restaurants and Popeyes locations in America. Carrols operates over 1,000 Burger King outlets and 60 Popeyes locations.
Since taking over as the Executive Chairman at Burger King in 2022, Patrick Doyle – previously of Domino’s Pizza – has prioritized improving franchisee profitability and has advocated for flashy marketing efforts to address cultural points of contention.
Carrols Restaurants Inc.
Carrols Restaurant Group operates 1,022 Burger King locations and 60 Popeyes Louisiana Kitchen locations across 23 states, making them the largest franchisee for Burger King in the US. Since 2012, they have invested in technology, improved digital and social media efforts and strengthened customer service offerings while adding self-order kiosks as part of a revamped Sizzle remodel program. Carrols’ latest results indicate same-store sales increases at their burger restaurants while marginal declines were experienced at Popeyes locations.
Restaurant Brands announced in a statement that they will acquire any remaining Carrols shares that do not already fall under RBI ownership for $9.55 each in cash – representing a 23% premium to their 30-day volume-weighted average price as of Friday.
Restaurant Brands expects the deal to close in the second quarter of 2024 and be neutral on adjusted earnings per share. Following completion, Restaurant Brands plans to invest $500 million to significantly speed up Carrols’ current rate of modernizing 600 restaurants over five years, an endeavor likely taking 5 years at most.
The company is also considering franchising out some of its restaurants to smaller local franchise operators who could take over some of them over time. Refranchising may take several years.
Restaurant Brands International Inc.
Restaurant Brands International Inc. announced Friday it plans to complete the consolidation of under-performing units this quarter and start 2024 with a stronger brand portfolio, as reported by executives on Friday. The Toronto-based company that owns Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs brands saw lower than anticipated quarterly profit due to flat traffic levels at its U.S. business weighing on overall results.
RBI also made changes to its reporting structure and will now operate under five reportable segments, BK, PLK, FHS and INTL. These align more closely with how its leadership team will be overseeing business moving forward.
RBI experienced global comparable sales growth of 6.8% during its third-quarter, excluding currency fluctuations. Sales were flat in the U.S. but outpaced Street Account estimates of 4% growth.
RBI and its brands are dedicated to creating an exceptional business that scales for good, striving to advance sustainable outcomes across food, planet, people and communities. By 2025, Burger King and Popeyes will have menu items free from artificial colors and flavors while Tim Hortons has set forward-looking objectives to reduce sugar content in beverages sold through Tim Hortons stores; an affiliate of Brazilian investment firm 3G Capital owns 32% in both companies.
Restaurant Brands International Holdings Inc.
Restaurant Brands International Holdings Inc operates and franchises restaurants globally, selling coffee and food products under the Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs brands. Tim Hortons restaurants specialize in premium tea blends blended with espresso-based hot and cold specialty drinks; classic sandwiches with grilled paninis; salads; soups; pastries; pastries and pastries made fresh daily at each location; classic sandwiches on freshly-baked artisan rolls with premium tea from Tim Hortons’ TimTea; classic sandwiches made-to-order paninis served fresh each time you visit while Burger King restaurants offer flame-grilled burgers alongside soft drinks, fries and desserts for guests; Popeyes restaurants specialize in serving signature dishes such as red beans and rice alongside soft drinks.
Restaurant Brands International’s acquisition of Carrols Restaurant Group will help accelerate growth in the US, where same-store sales rose 4.5% last quarter – exceeding Wall Street expectations and showing how the company is investing in their business.
Restaurant Brands announced it will invest in improving the quality of its restaurants and operations, increase advertising spend and drive higher franchisee profitability – its stock jumped 15% premarket trading. Owned by an affiliate of Brazilian investment firm 3G Capital Partners Ltd in Toronto Canada; Joshua Kobza was appointed CEO in 2019 to replace Jose Cil. Restaurant Brands strives to expand their TIM HORTONS, BURGER KING, POPEYES and FIREHOUSE SUBS brands while staying true to their respective core values, employee and franchisee relationships, long track records of community involvement and global reach – Restaurant Brands strives towards this end goal while staying true to these four core values as TIM HORTONS, BURGER KING POPEYES and FIREHOUSE SUBS brands while maintaining these four core values while taking full advantage of these strengths to expand them further and grow them all globally based in Toronto Canada! Restaurant Brands’ commitment lies within these four brands’ respective core values of employee/franchisee relationships while long track records of community support; thus, global expansion.
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