February 22, 2017 Leave a comment
Restaurant Brands International, the company that owns Burger King, will be buying Popeyes Louisiana Kitchen for $1.8 billion. Popeyes is known for its Cajun cuisine and extremely popular fried chicken which can be found in its 2,600 restaurants worldwide.
Daniel Schwartz, CEO of Restaurant Brands International, is excited about the new venture.
“RBI is adding a brand that has a distinctive position within a compelling segment and strong U.S. and international prospects for growth,” he said in a statement. “As Popeyes becomes part of the RBI family we believe we can deliver growth and opportunities for all of our stakeholders including our valued employees and franchisees. We look forward to taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the U.S. and around the world.”
Restaurant Brands International is already doing well in the fast food market due to Burger King’s rising sales, but this Popeyes purchase can make it a formidable opponent in the fried chicken arena, where KFC is still king. Wall Street seems to think it has a chance. As of Tuesday morning, the company’s value rose 19% (up from Friday’s closing numbers), bringing Popeyes’ stock up to $79 per share.
Popeyes was founded in the early 1970s in New Orleans, and has since become a staple for chicken lovers in more than 25 countries. Cheryl Bachelder, CEO of Popeyes, is just as excited as Schwartz when it comes to the RBI/Popeyes partnership.
“As Popeyes enters its 45th year,” she said, “it’s success reflects the amazing brand entrusted to us by founder Al Copeland, Sr. and the unique high trust partnership that we enjoy with our franchise owners. RBI has observed our success and seen the opportunity for exceptional future unit growth in the U.S. and around the world.
Restaurant Brands International also owns Tim Horton’s, the Canadian coffee and doughnut chain.