Burger King and Tim Horton’s parent Restaurant Brands International Inc. (NYSE:QSR ) is reportedly nearing a deal to acquire fried chicken restaurant chain Popeyes Louisiana Kitchen Inc. (NASDAQ:PLKI).
Written by StockNews.com
Bloomberg spoke with sources close to the matter, which indicated the M&A talks are in advanced stages:
Negotiations between the companies are ongoing, and a transaction could be announced as early as this week, said the people, who asked not to be identified as the details aren’t public. Talks could still fall apart, the people said. Popeyes has a market value of about $1.37 billion, while Restaurant Brands is worth $25 billion.
The source also said that the two firms had been talking about a potential deal last summer as well, but failed to strike a deal amicable to both sides. The new offer is said to be mostly cash, with little shares involved.
Reports also indicate that Popeyes tried to find other bidders over the weekend, but failed to generate much interest.
Popeyes operates and franchises over 2,500 fast food restaurants in over 48 states, and in 27 foreign countries.
...Year-to-date, QSR has gained 13.09%, versus a 5.17% rise in the benchmark S&P 500 index during the same period while PLKI has gained 9.33%.
QSR currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 54 stocks in the Restaurants category. PLKI currently has a StockNews.com POWR Rating of B (Buy), and is ranked #25 of 54 stocks in the Restaurants category.
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