Restaurant Brands International Inc. Reported To Be Acquiring Popeyes Louisiana Kitchen Inc

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).

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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 POWR Rating of A (Strong Buy), and is ranked #4 of 54 stocks in the Restaurants category. PLKI currently has a POWR Rating of B (Buy), and is ranked #25 of 54 stocks in the Restaurants category.

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Lorimer Wilson 3 years ago Author's comment

I would say things look promising for #Popeye because $QSR can use its international reach to introduce Popeyes' Louisiana-style fried chicken and buttermilk biscuits to more diners globally as 1,600 of its 2,000 restaurants are currently in the United States. $PLKI

Danielle Rogers 3 years ago Member's comment

Thanks Lorimer Wilson.

Danielle Rogers 3 years ago Member's comment

Would like to hear more about this potential acquisition. How does #Popeye's look as a company from a stock perspective and how will acquiring $PLKI help $QSR?