Burger King Spends $1.8 Billion Eating Up The Fried Chicken Business
The Canadian owner of Burger King and Tim Horton’s restaurants plans to purchase Popeyes Louisiana Kitchen for $1.8 billion, Reuters reported Tuesday.
Restaurant Brands International (RBI), based in Ontario, Canada, said in a press release that Popeyes restaurants will continue to be managed independently in the U.S., as is Burger King. (RELATED: Ordering ‘Fries Extra Crispy’ Got You Weed At This Drive-Thru)
“Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world,” Daniel Schwartz, CEO of RBI said in a statement. “With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong US and international prospects for growth.”
Popeyes is proud of the deal that will give stockholders a 27 percent premium on shares, and hopefully allow the company to open new restaurants across the country.”RBI has observed our success and seen the opportunity for exceptional future unit growth in the U.S. and around the world,” Cheryl Bachelder, CEO of Popeyes, said in a statement. “The result is a transaction that delivers immediate and certain value to the Popeyes shareholders.”
Burger King merged with Tim Horton’s restaurants in 2014 in an $11 billion deal, creating the RBI holding company. Burger King was able to avoid the high U.S. corporate tax rate in the process.
The left-leaning Americans for Tax Fairness said Burger King was able to save the $1.2 billion in taxes over a five year period by re-incorporating in Canada, which has a 26 percent corporate tax rate, compared to the U.S.’s 33 percent rate.
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