Burger King Parent Restaurant Brands International Buys Firehouse Subs for $1 Billion – NBC 7 San Diego
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- Restaurant Brands International announced Monday that it had bought Firehouse Subs for $ 1 billion.
- The sandwich chain has around 1,200 locations in the USA and expects system-wide sales of 1.1 billion US dollars in 2021.
- Restaurant Brands shares rose 2% on the news in pre-trading.
Burger King parent Restaurant Brands International announced on Monday that it had bought Firehouse Subs for $ 1 billion.
The restaurant conglomerate’s shares rose 2% on the news in pre-market trading. The stock is down 4% this year for a market value of $ 27.1 billion.
The sandwich chain is now the fourth brand in the portfolio of Restaurant Brands, which also includes Popeyes Louisiana Kitchen and Tim Hortons. It has long been rumored that the restaurant company is looking for another fast food chain, though the revival of Tim Hortons and the acceleration of Popeyes’ growth have kept it busy.
“We see tremendous potential to accelerate US and international growth at Firehouse Subs with the development expertise, global franchisee network and digital capabilities of RBI,” said Jose Cil, CEO of Restaurant Brands.
Firehouse Subs was founded in 1994 by brothers and ex-firefighters Chris and Robin Sorensen. The chain has around 1,200 locations in the United States and expects system-wide sales of $ 1.1 billion in 2021. In the first 10 months of the year, sales in the same store increased 20% over the same period two years ago.
Like the other chains of Restaurant Brands, most of the Firehouse Subs locations are operated by franchisees.
Restaurant Brands said it will fund the bar deal through a combination of debt and use of available cash. Upon completion of the transaction, Firehouse’s headquarters will remain in Jacksonville, Florida and it is expected that CEO Don Fox and CFO Vincent Burchianti will remain.
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