Restaurant Brands International, the owner of Burger King and Tim Hortons, is said to have approached Popeyes Louisiana Kitchen about a possible acquisition.
Citing sources familiar with the matter, Reuters says that RBI and Popeyes have yet to agree on a deal price, and there is no certainty that negotiations will continue.
Popeyes operates and franchises more than 2,600 locations worldwide, with more than 90 percent of company-operated restaurants in Louisiana and Tennessee. In 2016, the company reported positive same-store sales growth of 1.7 percent and opened 216 new restaurants globally.
Shares of the brand rose on the news of the potential acquisition Monday, and the rumors coincided with RBI reporting its revenue and earnings for Q4, which beat analyst expectations. Both Burger King and Tim Horton’s reported same-store sales growth for the year, and greater than 5 percent increases in system-wide sales.
A potential acquisition could bring Popeyes’ cuisine to more diners as around 70 percent of the brand’s domestic franchised restaurants are in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia, and Mississippi. Of its nearly 400 international franchised restaurants, about 55 percent are located in Korea, Canada, and Turkey.
Popeyes and RBI have not commented on the rumor.
By Alex Dixon
