Burger King’s parent restaurant Brands International buys Firehouse Subs for $ 1 billion

Burger King’s parent Restaurant Brands International announced on Monday that it had bought Firehouse Subs for $ 1 billion.

The restaurant conglomerate’s shares rose more than 1% on the news. Shares are down 4% this year, bringing the company’s market value to $ 27.1 billion.

The sandwich chain is now the fourth brand in Restaurant Brands’ portfolio, which also includes Popeyes Louisiana Kitchen and Tim Hortons. For a long time, there were rumors that the restaurant company was on the hunt for another fast food chain, although the resurgence of Tim Horton and the accelerating growth of Popeyes haunted her.

“We see tremendous potential to accelerate growth for Firehouse Subs in the US and overseas through RBI’s development expertise, global franchisee network and digital capabilities,” Restaurant Brands CEO Jose Seal said in a statement.

Firehouse Subs was founded in 1994 by brothers and former firefighters Chris and Robin Sorensen. The chain has approximately 1,200 stores in the United States and expects total system-wide sales of $ 1.1 billion in 2021. In the first 10 months of the year, sales in the same stores increased by 20% compared to the same period two years ago.

Like other Restaurant Brands chains, most of the Firehouse Subs outlets are operated by franchisees.

The restaurant brands have said they will fund the deal exclusively in cash from a combination of debt and cash that it has. Restaurant Brands expects the deal to close in the next few months. Following the close of the deal, the Firehouse headquarters will remain in Jacksonville, Florida, while its CEO Don Fox and CFO Vincent Burchanti are expected to remain.

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