From CNBC:

Restaurant Brands International is acquiring Carrols Restaurant Group, the largest U.S. Burger King franchisee, for $1 billion in cash, or $9.55 per share. Carrols operates over 1,000 Burger King restaurants and 60 Popeyes locations. The deal is expected to be completed by the second quarter of 2024, marking a shift in strategy for Burger King, which has been almost entirely franchised for the last decade.

The acquisition comes more than a year after Restaurant Brands unveiled a $400 million plan to revive Burger King’s U.S. business, focusing on restaurant remodels and advertising to drive demand and boost franchisee profits. Restaurant Brands plans to rapidly remodel 600 of Carrols’ Burger King locations over the next five years and then sell them back to franchisees, investing about $500 million, funded by Carrols’ operating cash flow, to pay for the renovations.

After selling off the majority of Carrols’ locations in five to seven years, Burger King plans to hold onto a couple hundred restaurants for “strategic innovation, training, and operator development purposes.” Earlier this month, Carrols preannounced its fourth-quarter results, sharing that same-store sales for its Burger King locations rose 7.2% and traffic increased 2.9%, outperforming the rest of Burger King’s U.S. system.



Read more: Burger King owner Restaurant Brands buys Carrols, largest U.S. franchisee