Burger King Buys Popeyes for $1.8 Billion

Restaurant Brands International has announced their decision to purchase the fast food chain Popeyes Louisiana Kitchen for $1.8 Billion and expand their holdings. 

Popeyes has managed several great successes in recent years. Based in Atlanta, the company has 2600 restaurants, spread across 26 different countries. Their stocks have consistently been raising in value for the last eight years, with their most recent quarter seeing a 1.8% increase in sales. Experts attribute the business’s growth to a highly effective advertising campaign, excellent rebranding, and innovative techniques and tactics.

It was, therefore, inevitable that many would want to capitalize on these successes and absorb Popeyes.

 It has been announced that the buyout is expected to be finalized by April. The purchase can be explained as a cash value of $79 for every one of Popeyes’s shares (a 19% premium.) In addition, it seems that Popeyes will still be independently managed within the U.S.

The positive impact the deal will have is already being seen for both parties. Restaurant Brands saw a share increase as high as 7.3%, while Popeyes’ stock rose up to 19%. The former is already looking into ways to maximize the profits of their new acquisition, such as franchising and making expansions abroad. The company has made it clear that this is just the beginning of a well-planned strategy to raise profits by acquiring brands and subsequently cutting costs. Their next purchase could even be as soon as twelve months from now.


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