Burger King’s Parent Restaurant Brands Acquires Carrols Restaurant Group for $1B

Burger King's parent company, Restaurant Brands International Inc., announced on Tuesday, Jan. 16, that it has acquired Carrols Restaurant Group, the largest franchisee of BK in the United States. The company said it would spend $1 billion on the buyout deal, which is part of its scheme to fix up the home of the Whopper restaurants.

Major Face Lift for US Burger King Stores

RBI is buying Carrols for $9.55 per share, and the large total amount is set to be paid in all cash, as per Fox Business. The acquisition is included in Burger King's ongoing "Reclaim the Flame" plan, which aims to move away from large franchisees so the company may revamp the brand by freshening up BK stores and appealing to younger crowds.

The Burger King chain has mostly been franchised in the last decade, and while it has over a thousand locations in the U.S., the corporate-owned is only 175. Carrols operates 1,022 BK stores in 23 states, and RBI will get a hold of them after the transaction is completed.

CNBC reported that RBI plans to renovate and upgrade at least 600 stores owned by Carrols. Later, once the revamp is done, the company will sell them back to franchisees.

New Opportunities for Carrols Team Members as They Join RBI

RBI's chief executive officer, Josh Kobza, described their acquisition of Carrols as "a terrific example" of the company's commitment to lay down their capital to work to spur growth and support. "The strategic merits of this acquisition are very compelling and consistent with our objective to invest our capital in long-term, high-return opportunities," he said.

"Carrols has demonstrated strong and improving restaurant operations over the years. This acquisition is an exciting accelerator to our Reclaim the Flame plan that is focused on relentlessly pursuing a better experience for our Guests," Burger King U.S. and Canada's president, Tom Curtis, said in a press release. "We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our Guests."

Lastly, Carrols Group's president and CEO, Deborah Derby, further commented that the deal announcement attests to the company's more than 24,000 team members who have helped propel Carrols to record levels of profitability in the last 12 months. Derby also believes their employees will have more opportunities as they become part of the RBI family.

Restaurant Brands International shared that it expects its acquisition of Carrols Restaurant Group to be completed in the second quarter of this year.

Photo by: Restaurant Brands International Press Release