Restaurant Brands, owners of Tim Hortons, pronounced to be eyeing Popeyes Louisiana Kitchen

Restaurant Brands International Inc., owners of a Burger King and Tim Hortons fast-food chains, has approached Popeyes Louisiana Kitchen Inc about a probable acquisition, people informed with a matter pronounced on Monday.

Shares of Atlanta-based Popeyes changed neatly aloft on a news. The batch was adult $4.78 US, or some-more than 7 per cent, to $70.82 US on Nasdaq.

A understanding would be a gamble by Oakville, Ontario-based Restaurant Brands that it can use a general strech to deliver Popeyes’ famous Louisiana-style boiled duck and buttermilk biscuits to some-more diners globally.

RBI and Popeyes have nonetheless to determine on a understanding price, and there is no certainty that negotiations will continue, a people said. Restaurant Brands has also been deliberation a merger of other companies, one of a people added.

The sources asked not to be identified given a matter is confidential. Popeyes declined to comment, while Restaurant Brands did not immediately respond to a ask for comment.

Restaurant Brands International, a owners of Tim Hortons and Burger King, saw a increase some-more than triple final year. (Sean Kilpatrick/Canadian Press)

Restaurant Brands shares rose roughly 4½ per cent to $70.22 in Toronto.

Popeyes, whose fans embody cocktail thespian Beyoncé, began 45 years ago as a Southern-fried “Chicken on a Run” grill in a New Orleans suburb. It has given stretched to some-more than 2,000 restaurants, of that 1,600 are in a United States.

The association has benefited from clever patron loyalty, as good as from a grill refurbishment program.

Chicken accounts for about 10 per cent of a fast-food industry, according to information use IBISWorld, and Popeyes’ marketplace share is growing. The largest brands in a zone embody secretly hold Chick-fil-A and Yum! Brands Inc’s KFC.

Private equity organisation 3G Capital, that is tranquil by Brazilian billionaire Jorge Paulo Lemann, owns about 43 per cent of a voting shares in Restaurant Brands. 3G Capital has done a name by appropriation vital U.S. consumer companies including Kraft Heinz Co.

Restaurant Brands was shaped in 2014, when 3G Capital-backed Burger King acquired Canadian coffee and doughnut sequence Tim Hortons Inc for $11 billion.

3G Capital’s long-time partner, Warren Buffett’s Berkshire Hathaway Inc, committed $3 billion of elite equity to financial that deal.

Article source: http://www.cbc.ca/news/business/tim-hortons-burger-king-profit-1.3979830?cmp=rss