For the love of food! Burger King reportedly bought out the Popeyes Louisiana Kitchen company February 21, 2017.
According to CNN, the Restaurant Brands International, owners of Burger King and Tim Horton’s coffee shop chain, decided to buy the fired chicken chain for $1.8 billion. CNN reported they bought the company for $79 per share, which reflects a 27 percent premium on the 30-day average of the company’s share price.
Popeyes was founded 45 years ago by entrepreneur, Al Copeland, in New Orleans. It has over 2,600 store locations with 97 percent of those stores being owned by franchisees. Being highly known for their Louisiana style fried chicken and seafood, their Cajun-loving headquarters somehow found a home based in Atlanta, Georgia.
Despite the number of stores they have, their acquisition reflected slowing sales growth after several years of expansion. The company opened 216 new stores in 2016 after opening 219 in 2015.
The average Popeyes location has $1.4 million in annual revenue with franchisee profitability averaging $340,000 per location in 2015, according to a public filing. Restaurant Brands stock has been scoring more points than McDonald’s, Wendy’s and KFC lately. Big thanks to the results from stronger sales at Burger King.
There’s no word on whether Restaurant Brands plan to close any Popeyes locations, cut jobs or begin merging the two companies. But most importantly, there’s no word on if they’re going to change the well-known Cajun chicken recipe (and probably ruin it). The public will just have to wait and see what is to come for the two fast-food companies.
However, they mentioned that they plan to “continue developing the brand at an increasing pace.” Restaurant Brands CEO Daniel Schwartz even said that the brand will be managed independently.
“The key to long-term success at Popeyes will be a focus on guest satisfaction and franchise profitability,” said Schwartz. “The team has done a great job setting the foundation for future growth.”
According to the CNN website, the Popeyes CEO, Cheryl Bachelder, also stated that the “high trust partnership that we enjoy with our franchise owners” was a plus for Restaurant Brands. Sounds like good things are to come with the two companies merging, and the future of these two companies seems to be heading in a good direction. We’ll just have to wait to see what the stocks will show … and if they make any negative changes to the brand.