Burger King to Buy Out Franchisee for $1 Billion

<p>Burger King’s owners, Restaurant Brands International, is out to buy
Carrols Restaurant Group, for a sizzling $1 billion.</p><p>The $1 Billion Bite: Burger King’s Royal Purchase</p><p>In the glamorous world of burgers and fries, where kings reign supreme,
Restaurant Brands International Inc., (RBI) <a href="https://www.rbi.com/English/corporate-profile/default.aspx">the proud
owner of Burger King</a>, is throwing a billion-dollar feast. The target of its
royal desires? Carrols Restaurant Group Inc., the <a href="https://www.carrols.com/">chain’s largest US franchisee</a>.</p><p>For a cool $1 billion, you could snag an awful lot of Whoppers.
Disclaimer: Calculating US sales tax might be a mystery to us, so we’ll just
say that you could get a lot. Instead, Restaurant Brands International (RBI),
the sovereign ruling over Burger King, has opted to shower its riches on
Carrols Restaurant Group, <a href="https://www.rbi.com/English/news/news-details/2024/Burger-King-Company-to-Acquire-Carrols-Restaurant-Group/default.aspx">unfurling
a plan to crown itself with over 1,000 new company-owned locations</a>.</p><p>Going All Out to "Reclaim the Flame"</p><p>This grand financial outpouring is no royal whim. It's a strategic move
embedded in RBI's grand "<a href="https://www.prnewswire.com/news-releases/burger-king-announces-reclaim-the-flame-plan-to-accelerate-growth-in-the-us-301621350.html">Reclaim
the Flame</a>" plan that was unveiled in 2022. Beyond the Carrols banquet,
this regal initiative will see $400 million invested over two years to give
Burger King a facelift in marketing, digital prowess, and restaurant
refurbishments. Tom Curtis, the president of Burger King US and Canada, hailed
the Carrols union as the "accelerator" for the grand "Reclaim
the Flame" spectacle.</p><blockquote><p lang="en" dir="ltr">Burger King owner Restaurant Brands will buy franchisee Carrols Restaurant for about $1 billion in cash <a href="https://t.co/SJ6UvZyZkV">https://t.co/SJ6UvZyZkV</a></p>— Bloomberg (@business) <a href="https://twitter.com/business/status/1747276637039710545?ref_src=twsrc%5Etfw">January 16, 2024</a></blockquote><p>Whipping Up the Kingdom</p><p>But this isn't a fleeting feast. Post the remodeling, Burger King plans
to reshuffle its dominion. Most of the stores will be passed into the hands of
new or existing, smaller franchisee owners – a project that could span five to
seven years.</p><p>The kingdom's masterplan doesn’t stop there. It's a saga scripted to
invest cutting-edge technology, pump up advertising expenditures, and elevate
the customer experience, aiming to rejuvenate footfall and reverse the trend of
slumping sales. </p><p>Carrols' shares soared as much as 14% in Tuesday's pre-market trading,
after a brief halt. Meanwhile, Restaurant Brands' shares maintained a regal
poise in pre-market trading, having risen by a majestic 21% in 2023, surpassing
the New York Stock Exchange’s Composite Index by a whopping 10%.</p>

This article was written by Louis Parks at www.financemagnates.com.