Burger King’s owners, Restaurant Brands International, is out to buy Carrols Restaurant Group, for a sizzling $1 billion.
The $1 Billion Bite: Burger King’s Royal Purchase
In the glamorous world of burgers and fries, where kings reign supreme, Restaurant Brands International Inc., (RBI) the proud owner of Burger King, is throwing a billion-dollar feast. The target of its royal desires? Carrols Restaurant Group Inc., the chain’s largest US franchisee.
For a cool $1 billion, you could snag an awful lot of Whoppers. Disclaimer: Calculating US sales tax might be a mystery to us, so we’ll just say that you could get a lot. Instead, Restaurant Brands International (RBI), the sovereign ruling over Burger King, has opted to shower its riches on Carrols Restaurant Group, unfurling a plan to crown itself with over 1,000 new company-owned locations.
Going All Out to "Reclaim the Flame"
This grand financial outpouring is no royal whim. It's a strategic move embedded in RBI's grand "Reclaim the Flame" plan that was unveiled in 2022. Beyond the Carrols banquet, this regal initiative will see $400 million invested over two years to give Burger King a facelift in marketing, digital prowess, and restaurant refurbishments. Tom Curtis, the president of Burger King US and Canada, hailed the Carrols union as the "accelerator" for the grand "Reclaim the Flame" spectacle.
Whipping Up the Kingdom
But this isn't a fleeting feast. Post the remodeling, Burger King plans to reshuffle its dominion. Most of the stores will be passed into the hands of new or existing, smaller franchisee owners – a project that could span five to seven years.
The kingdom's masterplan doesn’t stop there. It's a saga scripted to invest cutting-edge technology, pump up advertising expenditures, and elevate the customer experience, aiming to rejuvenate footfall and reverse the trend of slumping sales.
Carrols' shares soared as much as 14% in Tuesday's pre-market trading, after a brief halt. Meanwhile, Restaurant Brands' shares maintained a regal poise in pre-market trading, having risen by a majestic 21% in 2023, surpassing the New York Stock Exchange’s Composite Index by a whopping 10%.
