Restaurant Brands International Inc. (NYSE:QSR) has entered into an agreement to acquire Carrols Restaurant Group (NASDAQ:TAST) in a deal valued at $1.0 billion. The agreed-upon price of $9.55 per share for TAST reflects a 23.1% premium over Carrols’ 30-day volume-weighted average price.
As of the latest data in September 2023, Carrols stands as the largest Burger King franchisee in the United States, operating 1,022 Burger King restaurants across 23 states, with a system sales revenue of approximately $1.8 billion. Additionally, Carrols owns and operates 60 Popeyes® restaurants in six states.
Burger King has outlined plans to swiftly renovate the newly acquired restaurants within the next five years. This move is in line with Burger King’s strategic initiative, “Reclaim the Flame,” aimed at propelling sales growth and enhancing franchisee profitability. The acquisition follows Burger King’s initial $400 million investment, announced in September 2022, dedicated to driving high-quality remodels, operational improvements, marketing enhancements, and ongoing investments in technology and digital priorities. Looking forward, Burger King anticipates a substantial acceleration in the rate of remodels for Carrols’ portfolio, with the goal of bringing the acquired establishments up to a modern image standard within the next five years.
To ensure a thorough and deliberate evaluation of the proposal, a special transaction committee of Carrols’ board, consisting of independent directors and supported by independent legal and financial advisors, was established.
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