Burger King Parent Restaurant Brands' To Acquire Carrols Restaurant For $1B

Zinger Key Points
  • Restaurant Brands will acquire all of Carrols issued and outstanding shares for $9.55 per share.
  • Burger King to remodel acquired restaurants over the next 5 years.

Restaurant Brands International Inc QSR has reached an agreement to acquire all shares of Carrols Restaurant Group Inc TAST for $9.55 per share in an all-cash transaction.

The offer represents an aggregate total enterprise value of approximately $1.0 billion, a 23.1% premium to Carrols’ 30-day volume-weighted average price as of January 12, 2024.

Carrols is the largest Burger King franchisee in the United States today, operating 1,022 Burger King restaurants in 23 states and 60 Popeyes restaurants in six states.

The transaction is part of Burger King’s Reclaim the Flame plan to accelerate sales growth and drive franchisee profitability. 

Burger King plans to invest about $500 million of capital, funded by Carrols’ operating cash flow, to remodel about 600 acquired restaurants that are not currently considered modern image.

Burger King plans to re-franchise most of the portfolio to new or existing smaller franchise operators who live in their local communities.

The re-franchising exercise will be completed in five to seven years.

The transaction is expected to be completed in the second quarter of 2024.

Restaurant Brands held $1.3 billion in cash and equivalents as of September 30, 2023.

Price Action: QSR shares are trading lower by 3.21% at $75.93. TAST stock is trading higher by 13% at $9.52 on the last check Tuesday.

Photo by Savvapanf on Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: M&ANewsBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!