Owner of Burger King to Buy One of the Largest Franchises for $1 Billion

CNBC claims that Restaurant Brands International will pay $1 billion to buy Burger King's largest U.S. franchisee, Carrols Restaurant Group.

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This purchase comes a year after Restaurant Brands announced its $400 million plan to turn around Burger King in the U.S.

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Burger King is having to compete with Wendy's, which “overtook it as the second-largest burger chain by U.S. sales.”

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This comeback approach entails revitalizing the restaurant and increasing advertising to enhance demand and franchisee earnings.

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Tom Curtis, president of Burger King U.S. and Canada, says Restaurant Brands plans to renovate 600 Carrols' Burger King sites in five years and sell them to franchisees.

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Restaurant Brands will pay $9.55 per share for Carrols, which owns over 1,000 Burger King and 60 Popeyes restaurants.

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Carrols' stock closed Friday at $8.42, worth $459 million, and rose over 12% in pre-market trading after the news surfaced on Tuesday.

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To finance the refurbishments, Carrols will use its operational cash flow to allocate $500 million.

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