Restaurant Brands International Inc., the parent company of Burger King, has announced a major acquisition, buying out its largest franchisee, Carrols Restaurant Group Inc., for approximately $1 billion. The deal involves purchasing all outstanding shares of Carrols that Restaurant Brands doesn’t already own at $9.55 per share.
Carrols, based in Syracuse, New York, operates 1,022 Burger King restaurants across 23 states, representing about 15% of all U.S. Burger King locations, along with 60 Popeyes restaurants. The acquisition is part of Restaurant Brands’ extensive renovation plan, with a commitment to remodel around 600 Burger King locations using Carrols’ operating cash flow.
Tom Curtis, President of Burger King U.S. and Canada, emphasized the goal of updating these restaurants and eventually re-franchising them to local operators. The company plans to retain a couple of hundred restaurants in its portfolio.
This strategic move comes as part of Restaurant Brands’ broader effort to modernize its U.S. stores, keeping pace with competitors like McDonald’s. The transaction, expected to close in the second quarter, is subject to approval from Carrols’ shareholders and follows a “go shop” period for alternative proposals.
Restaurant Brands aims to enhance customer experience with digital upgrades and new kitchen equipment, reflecting a shift towards modernization in the fast-food industry.
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