Restaurant Brands International Inc. (“RBI”) has finalized its acquisition of all issued and outstanding shares of Carrols Restaurant Group, Inc. for $9.55 per share, culminating in a total enterprise value of approximately $1.0 billion. This transaction marks a significant expansion for RBI, bringing the largest Burger King franchisee in the United States under its corporate umbrella. This move is part of RBI’s ambitious “Reclaim the Flame” plan, which aims to revitalize and expand its Burger King portfolio.

Strategic Investment and Expansion Plans

With this acquisition, RBI is set to make a substantial investment of $500 million to reimagine over 600 Carrols-operated restaurants. The reimaging initiative is scheduled before a planned refranchising to new or existing smaller franchise operators over the next seven years. This strategy is designed to enhance the customer experience and operational efficiency across the extensive network of fast-food outlets.

Financing the Acquisition

To facilitate this significant acquisition, RBI subsidiaries amended their existing Credit Agreement on May 16, 2024. This amendment increased their Term Loan B Facility from $5.2 billion to $5.9 billion. The additional funds from this increase, along with cash on hand, were used to complete the purchase of Carrols, including the payoff of Carrols’ credit agreement and the redemption of its 5.875% senior notes due in 2029.

About Carrols Restaurant Group

Carrols Restaurant Group has been a prominent player in the North American restaurant industry, particularly known for its substantial presence within the Burger King franchise. As of now, Carrols operates 1,023 Burger King restaurants across 23 states and 59 Popeyes restaurants in six states. The company’s relationship with Burger King started in 1976, and it began operating Popeyes locations in 2019, showcasing a long-standing and expanding footprint in the fast-food sector.

Expert Opinion and Market Impact

The acquisition by RBI is a strategic enhancement of its market presence and operational capabilities. It not only enlarges RBI’s direct control over its franchises but also sets a precedent for further acquisitions in the industry. The substantial investment in remodeling and updating the restaurant facilities reflects RBI’s commitment to maintaining a competitive edge in the fast-food market, potentially leading to increased market share and improved customer satisfaction.

  Burger King, Burger King Franchise, Carrols Restaurant Group, Fast Food Industry Acquisition, RBI Reclaim the Flame, Restaurant Brands International