Restaurant Brands International Inc. (QSR - Free Report) , owner of Burger King and Tim Hortons, has reached a deal with Popeyes Louisiana Kitchen Inc. to acquire the fried chicken chain for $1.8 billion.
Restaurant Brands will pay Popeyes shareholder $79 per share, a 19% premium to Friday price at market close.
Popeyes is currently up 19% at $78.77 per share, while Restaurant Brands is up almost 7% at $57.50 per share.
Reuters reported on Feb. 13 that Restaurant Brands approached Popeyes about possible acquisition. This is the first major acquisition that Restaurant Brands has made since the company was formed in 2014 through the merger of Burger King and Tim Hortons.
“We get to add another iconic, incredible brand with this really rich Louisiana heritage,” said Daniel Schwartz, CEO of Restaurant Brands, in a press release. “We see it resonating with guests all around the world, and we see an opportunity to massively accelerate the growth.”
Popeyes will continue to operate and manage independently in Atlanta.
Popeyes began 45 years ago as a Southern-fried “Chicken on the Run” restaurant in a New Orleans Suburb. The company has since expanded to more than 2,600 stores in the U.S. and 25 other countries.
Restaurant Brands, backed heavily by 3G Capital, a Brazilian private equity firm, was created in 2014 when Burger King bought Tim Hortons Inc. for $11 billion. The company said the transaction is being paid for with cash on hand and a financing commitment from J.P. Morgan (JPM - Free Report) and Wells Fargo (WFC - Free Report) .
The acquisition is expected to close by early April 2017.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Restaurant Brands International Inc. (QSR - Free Report) , owner of Burger King and Tim Hortons, has reached a deal with Popeyes Louisiana Kitchen Inc. to acquire the fried chicken chain for $1.8 billion.
Restaurant Brands will pay Popeyes shareholder $79 per share, a 19% premium to Friday price at market close.
Popeyes is currently up 19% at $78.77 per share, while Restaurant Brands is up almost 7% at $57.50 per share.
Reuters reported on Feb. 13 that Restaurant Brands approached Popeyes about possible acquisition. This is the first major acquisition that Restaurant Brands has made since the company was formed in 2014 through the merger of Burger King and Tim Hortons.
“We get to add another iconic, incredible brand with this really rich Louisiana heritage,” said Daniel Schwartz, CEO of Restaurant Brands, in a press release. “We see it resonating with guests all around the world, and we see an opportunity to massively accelerate the growth.”
Popeyes will continue to operate and manage independently in Atlanta.
Popeyes began 45 years ago as a Southern-fried “Chicken on the Run” restaurant in a New Orleans Suburb. The company has since expanded to more than 2,600 stores in the U.S. and 25 other countries.
Restaurant Brands, backed heavily by 3G Capital, a Brazilian private equity firm, was created in 2014 when Burger King bought Tim Hortons Inc. for $11 billion. The company said the transaction is being paid for with cash on hand and a financing commitment from J.P. Morgan (JPM - Free Report) and Wells Fargo (WFC - Free Report) .
The acquisition is expected to close by early April 2017.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on WFC - FREE
Get the latest research report on JPM - FREE
Get the latest research report on QSR - FREE