Burger King mother or father Restaurant Manufacturers Worldwide buys Firehouse Subs for $1 billion

Burger King mother or father Restaurant Manufacturers Worldwide introduced Monday it purchased Firehouse Subs for $1 billion.

Shares of the restaurant conglomerate rose greater than 1% on the information. The inventory has fallen 4% this 12 months, giving it a market worth of $27.1 billion.

The sandwich chain is now the fourth model in Restaurant Manufacturers’ portfolio, which additionally contains Popeyes Louisiana Kitchen and Tim Hortons. The restaurant firm has lengthy been rumored to be on the hunt for an additional fast-food chain, though reviving Tim Hortons and accelerating Popeyes’ progress has stored it busy.

“We see super potential to speed up U.S. and worldwide progress at Firehouse Subs with RBI’s growth experience, world franchisee community and digital capabilities,” Restaurant Manufacturers CEO Jose Cil stated in an announcement.

Firehouse Subs was based in 1994 by brothers and former firefighters Chris and Robin Sorensen. The chain has roughly 1,200 areas throughout the U.S. and expects $1.1 billion in systemwide gross sales for 2021. For the primary 10 months of the 12 months, its same-store gross sales climbed 20% in contrast with the identical time two years in the past.

Like Restaurant Manufacturers’ different chains, the vast majority of Firehouse Subs’ areas are operated by franchisees.

Restaurant Manufacturers stated it will fund the all-cash deal by means of a mixture of debt and utilizing the money it has readily available. Restaurant Manufacturers expects the deal to shut someday over the subsequent few months. After the transaction closes, Firehouse’s headquarters will stay in Jacksonville, Florida, and its CEO, Don Fox, and CFO Vincent Burchianti are anticipated to remain.