Since purchasing Tim Hortons back in 2014, Restaurant Brands International have set their sights on further growth and global expansion. The Canadian parent company, which also owns and operates Burger King, has now added another property to its far-reaching empire. Along with double-doubles and whoppers, RBI can now boast beloved fried chicken chain, Popeyes, to their roster. The deal was announced earlier today, with multiple news outlets reporting an acquisition price of approximately $1.8 billion.
It's a hefty sum, but one that executives hope will pay dividends in the very near future. The Oakville-based restaurant giant is preparing to speed up Popeyes' expansion, building upon their current and impressive total of 2,600 locations. In an official press release from CEO Daniel Schwartz, RBI's exact game plan was still left to our imagination. "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. 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."
The massive deal was a hot rumour for the last few weeks, so naturally, today's confirmation of the acquisition is far from a surprise. Still, it's an impressive feat, and one that postures the Canadian parent company against stiff competition like McDonalds and Yum Brands. This new purchase gives Restaurant Brands International roughly 22,600 franchises across the world - a number that edges closer to the aforementioned companies, who own 36,800 and 43,600 stores respectively. According to reports from the Globe and Mail, the new deal gives shareholders of Popeyes a 19 per cent premium from its closing price on Friday. All in all, it's another big move from RBI, who look poised for more and more powerplays in the forthcoming years.