Restaurant Brands International Inc. said it’s buying Popeyes Louisiana Kitchen Inc. for $1.8 billion, bringing the fried chicken chain under the same corporate umbrella as Burger King and Tim Hortons.
The move fits with Restaurant Brands’ approach of taking over well-known fast-food chains it sees as having the potential for significant expansion. The deal gives Popeyes shareholders $79 per share, representing a 19% premium from its closing price on Friday.
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 that the company would add to its stable of fast-food chains. Since then, Restaurant Brands has been striking deals with local operators to open additional Burger Kings around the world and expand Tim Hortons in the U.S.
Restaurant Brands International, which is based in suburban Toronto, makes money from fees it charges franchisees who operate Burger King and Tim Hortons restaurants. It has more than 20,000 locations globally, and Popeyes would give it about another 2,600.
By comparison, McDonald’s Corp. had more than 36,800 locations around the world at the end of 2016.