It seems that Popeyes has entered the “Burger” kingdom of Restaurant Brands, which owns Burger King and Tim Hortons.
At 1.8 billion dollars, the deal reflects Restaurant Brands’ efforts to have an edge over competitors like Wingstop, Wendy’s, and McDonald’s. Popeyes has proven to be a safe choice thus far. The stock of the soon-to-be Popeyes owner rose about 7% shortly after the acquisition announcement.
Founded in 1972 in New Orleans, Al Copeland opened the household name. Their spicy Cajun chicken is a trademark hit, but not without past hiccups. In April of 1991 the company filed for bankruptcy, but since then has bounced back.
What Makes Restaurant Brands So Special?
Restaurant Brands International, not to be confused with Restaurant Brands New Zealand Limited, is a Canadian fast food company that was conceived by the Burger King-Tim Hortons merger in 2014. The Brazilian investment firm 3G Capital has a 51% stake in Restaurant Brands. While not a particularly old or extensively experienced company, Restaurant Brands certainly deserves attention. As the McDonalds come-back starts to decline, Burger King has significant potential. Tim Hortons, of course, is an established classic with Canadians and some on the American east coast.
Restaurant Brands’ new asset is not unique to the past fiscal year. Verizon and Yahoo, along with AT&T and Time Warner, are examples of risky, yet potentially sensible mergers. Like all business ventures, things are dicey. Additional influences from the Trump presidency, EU decision, and other international affairs, which are more unpredictable than the stock market, can also impact the fate of these companies. Popeyes’ future may be uncertain, but one thing is clear: just like a Burger ‘King’ there will always be corporate ‘kingdoms’. As long as these kingdoms engage in healthy competition, capitalism and free trade will bring more wonders to the world, wonders like spicy Cajun chicken.