Burger King $1 Billion Deal: Major Makeover and Acquisition Plans Revealed
Restaurant Brands International Inc. Initiates Mega Deal with Carrols Restaurant Group Inc. to Transform Burger King Outlets
Big news in the fast-food world! The company that owns Burger King, Restaurant Brands International Inc., is making a splash by buying its largest U.S. partner, Carrols Restaurant Group Inc., in a whopping $1 billion deal. The goal? To give Burger King a fresh new look by renovating loads of its spots.
Here's the deal: Restaurant Brands International Inc. is scooping up all the remaining shares of Carrols Restaurant Group Inc. at $9.55 per share. Right now, Carrols is in charge of running 1,022 Burger King joints across 23 states and also owns 60 Popeyes spots.
In the grand plan, Tom Curtis, the big shot in charge of Burger King in the U.S. and Canada, spilled the beans on the company's strategy. They want to quickly spruce up these new restaurants over the next five years and hand them over to local owners who are excited to create awesome experiences for guests.
To fund this massive project, Burger King is throwing about $500 million into the mix, using the cash flow from Carrols. The plan is to give a facelift to around 600 of the restaurants they're getting from Carrols. Burger King hopes to wrap up this revamp in about five to seven years, holding on to a few spots in its own collection.
This acquisition is a key part of Burger King's big plan to boost sales and make sure its partners running the restaurants are raking in profits. The deal also comes with a 30-day period where Carrols can see if anyone else wants to make a different offer.
Before everything becomes official, they need a thumbs-up from Carrols shareholders and the folks who own most of the Carrols stock. The plan is to close the deal in the second quarter. Restaurant Brands International Inc., the parent company based in Canada, will spill the beans on how well they did in 2023 next month. Back in the third quarter, they surprised everyone by making $252 million, and their stocks hit a high point earlier this month.
While shares of Restaurant Brands are taking a little dip before things kick off, Carrols Restaurant Group Inc. is having a party with nearly a 13% boost after the big news about this major acquisition.