A few months ago, Restaurant Brands International looked interested in buying the Popeyes Louisiana Kitchen. This chain of fried chicken fast food restaurants has been open since 1972, and in 2007 it was declared the second largest of its kind based on the number of units. There are 2,500 stores scattered around the world in more than 40 states plus 30 countries such as Canada, China, Germany, Bahamas, Mexico, Qatar or Turkey. However, only 30 such locations are actually owned by the company while the rest are franchises. Back in the 1980s, the marketing direction of the organization made use of the Popeye cartoon character to raise awareness about the brand. However, as of recently the fast food chain was about to be bought by the owner of Burger King and Tim Horton.
Sources close to the event stated that Restaurant Brands International has a few months ago contacted Popeyes Louisiana Kitchen to talk about a possible merger. The incentive that played a major role in this discussion was related to the international expertise of the caller. The company promised that it could make the buttermilk biscuits and special chicken fried in Louisiana style more popular than they are now. The strategy was to enter more worldwide markets.
None of the two parties made any statement regarding this negotiation. However, after this piece of news, Restaurant Brands International had its shares increased by 5% while Popeyes went through a 7% increase to $70.82 a share.
However, it seems that the deal is off. Since the talks started back in October, the Louisiana chain of restaurants became too expensive for the budget Restaurant Brands International had in mind. On November 9, the shares were up to $60.57 which made any possible proposition to become rejected in the end. The fact that the value of the fast food company soared even higher made any resume of the negotiations implausible.
On the other hand, the owner of Burger King and Tim Hortons is still looking for a merger someplace else. The main specifications for their next acquisitions are for the company to be just a local business and share no competitive edge with its own products. These requests narrow the possibilities down to concepts around pizza, Mexican and fried chicken.
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