Restaurant Brands International agreed to buy Popeyes Louisiana Kitchen Inc. for about $1.8 billion, adding a fried-chicken chain to its lineup of burgers and doughnuts.
The acquisition would be the first major deal for Restaurant Brands, which was formed in the 2014 merger of Burger King and Tim Hortons.
The company’s managers have long said they would consider taking over other brands, where they could boost profit by cutting costs and selling locations to franchisees. Restaurant Brands, backed by Brazilian private equity firm 3G Capital, also may look to expand the chain abroad.
“Restaurant Brands may be able to cut selling, general and administrative expenses in half in the next two years, and its private equity partners can boost international expansion as spicy flavors, chicken and rice tend to travel well,” said Michael Halen, an analyst at Bloomberg Intelligence. “It fits right into the 3G playbook.”
Full Content: Eater
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