Burger King owner to buy Popeyes for $1.8 billion
The company that owns Burger King added to its fast-food empire, announcing Tuesday that it had reached a deal to acquire chicken chain Popeyes for $1.8 billion.
Restaurant Brands International, which owns Burger King and coffeeshop chain Tim Hortons, said it had agreed to purchase the rapidly growing company formally known as Popeyes Louisiana Kitchen for $79 per share.
Popeyes has more than 2,600 locations, about double what it had in 2008, and about 97 percent are franchises.
Restaurant Brands said it would seek to “continue developing the brand at an increasing pace” in the U.S. and foreign markets.
Now based in Atlanta, the 45-yearold chain was founded by entrepreneur Al Copeland in New Orleans. The company is known for its Southern-inspired menu, featuring fried chicken and seafood.
The brand “will be managed independently,” Restaurant Brands CEO Daniel Schwartz said in a conference call, without taking questions.
“The key to long-term success at Popeyes will be a focus on guest satisfaction and franchise profitability,” Schwartz said. “The team has done a great job setting the foundation for future growth.”
It was not clear whether Restaurant Brands plans to close any locations or cut any jobs. The company did not respond to a request seeking comment.
The deal comes amid slowing sales growth for Popeyes after several years of expansion.
Sales at Popeyes stores open at least a year rose 1.7 percent for the fiscal year ended Dec. 25, according to an estimate released in January. That came after same-store sales growth of 5.9 percent in 2015.
The average Popeyes location has $1.4 million in annual revenue, Schwartz said.