Burger King’s Largest Franchisee Carrols, Acquired by RBI for $1 Billion, $500M Revamp

Restaurant Brands International Inc. has acquired Carrols Restaurant Group Inc., the largest Burger King franchisee in the United States, for approximately $1 billion. RBI plans to invest an additional $500 million to rebrand 600 Carrols locations as part of its 'Reclaim the Flame' initiative.

Burger King's Largest Franchisee Acquired for $1 Billion by RBI

The largest Burger King franchisee in the United States, Carrols Restaurant Group Inc., has been acquired by Restaurant Brands International Inc. for approximately $1 billion. According to a statement released on Thursday, the company plans to invest an additional $500 million to rebrand 600 Carrols restaurants.

$500 Million Rebrand Initiative for Carrols Locations

The $500 million reimaging initiative, a key component of Restaurant Brands International's ambitious 'Reclaim the Flame' plan, was unveiled in fall 2022.

According to Toronto, Canada-based Restaurant Brands International, this comprehensive plan involves a significant investment in transforming and revitalizing 600 Carrols restaurants, demonstrating the company's commitment to innovation and growth.

It will expedite the reimaging process until the organization refranchises the majority of the acquired portfolio to new or existing smaller franchise operators within the following seven years.

RBI Increases Loan Facility to Finalize Carrols Acquisition

Additionally, on May 16, RBI subsidiaries amended their existing credit agreement to increase the outstanding balance of the term loan B facility from $5.2 billion to $5.9 billion, with the same terms as the existing facility.

The proceeds, in conjunction with cash on hand, were utilized to finalize the acquisition of Carrols, which included the discharge and redemption of its outstanding 5.875% senior notes due in 2029 and the repayment of its credit agreement.

Carrols oversaw the operations of 59 Popeyes restaurants in six states and 1,023 Burger King locations across 23 states. Since 2019, Carrolls has managed Popeyes restaurants, having previously operated Burger King restaurants since 1976.

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