Restaurant Brands International Inc. is on the expansion path once again. This time, rumor has it that it is targeting Popeyes Louisiana Kitchen Inc. The news appears to be welcome in the market as shares of Popeyes rose right after.
The name Restaurant Brands International may not be a household name, but the brands that it holds are known globally. Tim Hortons is wildly popular in Canada and is also known in other parts of the world. In 2014, U.S. fast food chain Burger King merged with Tim Hortons. Burger King has several restaurants and outlets around the word.
Now, Restaurant Brands International wants to add Popeyes to its portfolio of restaurant chain, Reuters reported. Popeyes is widely known in the United States for its fried chicken.
Restaurant Brands International wants to leverage on the popularity of Popeyes in the United States, and expand the fried chicken fast food chain's reach in other parts of the world.
While Restaurant Brands International and Popeyes have been in discussions about the potential deal, sources said there is no guarantee that the two companies will reach an agreement, CNBC reported. While Popeyes is the main target, Restaurant Brands International is not dismissing the possibility of acquiring other companies.
The amount of money that Popeyes will receive from the sale has not yet been determined. Restaurant Brands International is hoping to take advantage of Popeyes' growing market share in the chicken part of the restaurant industry.
Popeyes popular competitors include Chick-fil-A, which is privately owned, and Yum! Brands Inc.'s KFC. If the fried chicken fast food chain agrees to become part of Restaurant Brands International, it will fall under the assets of private equity firm 3G Capital.
Jobs & Hire previously reported that Bob Evans Farms Inc. is selling its restaurant chain.