Restaurant Brands’ Burger King Revenue to Surge After Carrols Acquisition

In January, fast-food company Restaurant Brands International (NYSE: QSR) announced plans to acquire Carrols Restaurant Group (NASDAQ: TAST), the largest U.S. Burger King franchisee. The acquisition, set to conclude by 2Q 2024, will integrate Carrols’ 1,022 Burger King and 65 Popeyes restaurants into Restaurant Brands International’s portfolio. Before this acquisition, Burger King restaurants were predominantly franchised; now they will be part of Restaurant Brands’ company-operated segment. The deal is part of Restaurant Brands’ plan to revive Burger King’s U.S. business, focusing on investing in restaurant remodels and advertising to drive demand and boost franchisee profits.

With the acquisition, analysts expect a surge in company-owned restaurant revenues for Restaurant Brands’ Burger King and Popeyes in 2024, according to Visible Alpha consensus. Burger King’s company-owned restaurant revenue is projected to skyrocket to an estimated $1.3 billion in 2024, up from $97 million in 2023. Popeyes’ company-owned restaurant revenue is expected to grow by +79% year over year to an estimated $160 million in 2024.

Sector: Consumer Services
Industry: Restaurants & Bars
Tickers: QSR, TAST_US