- Restaurant Brands International has acquired all of the shares of Carrols Restaurant Group Inc.
- Restaurant Brands has signed a deal to acquire all remaining Carrols shares for US$9.55 a share in an all cash transaction for a total of approximately US$1.0 billion
- Burger King intends to refranchise a large majority of newly remodeled restaurants to smaller franchisee groups over time
- Restaurant Brands International stock closed at C$103.12 per share and Carrols Restaurant Group Inc. closed at C$12.78 per share
Restaurant Brands International (TSX:QSR,QSP,NYSE:QSR) has acquired all of the shares of Carrols Restaurant Group Inc. (NASDAQ:TAST).
Restaurant Brands has signed a deal to acquire all remaining Carrols shares for US$9.55 a share in an all-cash transaction for a total of approximately US$1.0 billion. The company says this represents a 23.1 per cent premium to Carrols 30-day volume-weighted average price as of Jan. 12 and a 13.4 per cent premium to the Jan. 12 closing price. The deal is expected to be completed by Q2 2024.
Burger King intends to refranchise large majority of newly remodeled restaurants to smaller franchisee groups over time. This is a new strategy for the burger chain, as its restaurants have been almost all franchised for the past decade, with only 175 corporate-owned locations.
Tom Curtis, president of Burger King U.S. and Canada, said in a news release that Carrols has demonstrated strong and improving restaurant operations over the years.
“We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our Guests,” Curtis said in a statement.
Carrols’ President and CEO Deborah Derby said in a statement that the transaction can deliver immediate value to shareholders at an attractive premium to its share price.
“Additionally, we believe our team members will now have additional opportunities as part of the greater RBI family – in our office, in the field and especially in our restaurants, including for longtime managers who may want to become franchisees themselves,” she said. “We look forward to working closely with Tom and the rest of the Burger King team in the months and years ahead.”
One of the world’s largest quick service restaurant companies, Restaurant Brands International Inc. generates more than US$40 billion in annual system-wide sales and more than 30,000 restaurants in more than 100 countries. Besides Burger King, Restaurant Brands owns Tim Hortons, Popeyes and Firehouse Subs.
Carrols operates two fast-food restaurant brands, Burger King and Popeyes.
Restaurant Brands International stock closed 2.03 per cent lower on Tuesday at C$103.12 per share.
Carrols Restaurant Group Inc. closed 12.47 per cent higher at C$12.78 per share.
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