Tuesday, September 25, 2018
Business

Parent of Burger King, Tim Hortons to buy Popeyes for $1.8 billion

NEW YORK — The parent company of Burger King and Tim Hortons is buying Popeyes for $1.8 billion, with plans to accelerate the growth of the fried chicken chain.

Such a move fits Restaurant Brands International's strategy of taking over well-known fast-food chains that it believes have the potential for wider expansion. While Popeyes has a presence in almost every state, its locations now are concentrated in the eastern half of the continental U.S.

Josh Kobza, Restaurant Brands' chief financial officer, said Tuesday the company plans to speed up Popeyes' expansion, as it has done with Burger King.

Restaurant Brands was created after Burger King, controlled by Brazilian investment firm 3G Capital, bought Tim Hortons in 2014. The corporate name it took signaled the company's aim of expanding its stable of fast-food chains. In the meantime, Restaurant Brands has been striking deals with local operators to open additional Burger Kings around the world.

However, Cowen analyst Andrew Charles said last week that the company has not yet accomplished its goal of expanding Tim Hortons internationally. Although Tim Hortons has signed three master franchise development agreements in the Philippines, the United Kingdom and Mexico, Charles noted no stores have yet opened under those deals.

Stephen Anderson, a Maxim Group analyst, noted last week that Popeyes has had stronger sales performance worldwide in the past two years compared to Burger King and Tim Hortons.

The deal gives shareholders of Popeyes Louisiana Kitchen Inc. $79 per share, a 19 percent premium from its closing price on Friday.

Restaurant Brands International Inc., based in suburban Toronto, has more than 20,000 locations globally, and Popeyes would give it about 2,600 more.

By comparison, McDonald's Corp. had more than 36,800 locations around the world at the end of 2016. Yum Brands, which owns KFC, Pizza Hut and Taco Bell, has more than 43,600.

Restaurant Brands makes money from fees it charges franchisees who operate Burger King and Tim Hortons restaurants. It has also been improving its financial results by cutting costs, the same strategy 3G has employed with another of its investments, Kraft Heinz.

Comments
Tampa Bay Whole Foods can now deliver through Amazon Prime Now

Tampa Bay Whole Foods can now deliver through Amazon Prime Now

Tampa Bay Whole Foods Market shoppers can finally get organic goodies delivered to their homes in a few hours as members of Amazon Prime. Amazon announced today that Whole Foods has added Tampa, nine other metro areas and parts of Seattle and New Yor...
Updated: 7 hours ago
FEMA rolling out new flood zone maps for Tampa Bay counties

FEMA rolling out new flood zone maps for Tampa Bay counties

Thousands of Tampa Bay-area property owners could soon find themselves with new flood zone designations on their homes and businesses.The Federal Emergency Management Agency has completed a years-long study to update flood zone maps in Hillsborough, ...
Updated: 4 hours ago
Rep. Charlie Crist urges federal consumer watchdog to investigate Marlin Financial

Rep. Charlie Crist urges federal consumer watchdog to investigate Marlin Financial

U.S. Rep. Charlie Crist is calling for the federal Consumer Financial Protection Bureau to investigate Marlin Financial, saying he was "disturbed" by a recent Tampa Bay Times’ investigation into the online auto finance company. In a letter Tuesday af...
Updated: 6 hours ago
Dunkin' to drop Donuts, change name in January

Dunkin' to drop Donuts, change name in January

Dunkin' is dropping the donuts — from its name, anyway.Doughnuts are still on the menu, but the company is renaming itself "Dunkin'" to reflect its increasing emphasis on coffee and other drinks.The change will officially take place ...
Updated: 12 hours ago
Struggling against Red Tide, a Redington Beach liquor store is too small to qualify for local aid

Struggling against Red Tide, a Redington Beach liquor store is too small to qualify for local aid

REDINGTON BEACH — Mark Wilson hasn’t had a customer for hours.As the only liquor store on his stretch of Pinellas County beaches, Wilson is used to a steady stream of tourists from the nearby condos and hotels. Other beachfront businesses affected by...
Published: 09/25/18
Weight Watchers slims its name down to WW

Weight Watchers slims its name down to WW

Weight Watchers is its dropping its brand name in exchange for something slimmer: "WW." The company says the new logo - coupled with the tagline "Wellness that Works" -- puts an emphasis on overall health and well being, with less...
Published: 09/24/18
Study: Some Tampa Bay neighborhoods among quickest selling in the state

Study: Some Tampa Bay neighborhoods among quickest selling in the state

Tampa Bay sounds like a home seller’s dream market — even compared to other locales statewide. According to a recent study by SmartAsset, four of the top 10 easiest places to sell a home in Florida are in the bay area. Northern Hillsborough County ac...
Published: 09/24/18
Lower demand brings slight dip in gas prices across state, Tampa Bay

Lower demand brings slight dip in gas prices across state, Tampa Bay

Just in time for fall, pump prices are finally declining. Gas prices in Florida averaged $2.72 per gallon Monday, down from $2.74 per gallon a week ago, according to AAA, The Auto Club Group. Tampa Bay prices were even lower at $2.63 per gallon, down...
Published: 09/24/18
SiriusXM to buy Pandora for $3.5 Billion in bid to expand reach

SiriusXM to buy Pandora for $3.5 Billion in bid to expand reach

Satellite radio provider Sirius XM said Monday that it would acquire music streaming service Pandora Media for $3.5 billion in a bid to corral listeners who do not want to pay for premium channels.Pandora rose to success by providing tailored radio s...
Published: 09/24/18
Jeff Vinik invests in gaming headset maker boosted by Fortnite’s popularity

Jeff Vinik invests in gaming headset maker boosted by Fortnite’s popularity

TAMPA — As a mutual fund wonder-boy, hedge fund manager and real estate investor, Jeff Vinik has long displayed a sense for knowing when to put money into the next big thing, and his latest bet on e-sports may be no different.Vink recently bought nea...
Published: 09/24/18