CLOSE With Burger King's owner, Restaurant Brands International, buying Popeyes, we couldn't help but think of the delicious collaborations that could take place. USA TODAY NETWORK

Popeyes: Al Copeland opened a restaurant called Chicken on the Run outside of New Orleans in 1972, and after it got off to a slow start he decided to make the chicken spicier, which proved to be a winning recipe. He changed the name to Popeyes Mighty Good Fried Chicken and started selling franchises in 1976. (Photo: Flickr/Jason Lam)

The company that owns Burger King added to its fast-food empire with a deal to acquire fried chicken chain Popeyes for $1.8 billion.

Restaurant Brands International, which owns Burger King and coffee-shop chain Tim Hortons, said Tuesday that it had agreed to purchase the rapidly expanding company formally known as Popeyes Louisiana Kitchen for $79 per share. The deal reflects a 27% premium on the 30-day average of the company's share price.

Popeyes has more than 2,600 locations, about double what it had in 2008. Some 97% are owned by franchisees.

Restaurant Brands said it would seek to "continue developing the brand at an increasing pace" in the U.S. and foreign markets.

Now based in Atlanta, the 45-year-old Popeyes was founded by entrepreneur Al Copeland in New Orleans. The company is known for its Southern-inspired menu, featuring fried chicken and seafood. But the acquisition comes amid slowing sales growth for Popeyes after several years of expansion.

Sales at Popeyes stores open at least a year rose 1.7% for the fiscal year ended Dec. 25, according to an estimate released in January. That came after same-store sales growth of 5.9% in 2015.

"The key to long-term success at Popeyes will be a focus on guest satisfaction and franchise profitability," Restaurant Brands CEO Daniel Schwartz said in a conference call. "The team has done a great job setting the foundation for future growth."

The deal marks the latest in a series of moves that bear the hallmarks of Brazilian investment firm 3G Capital's approach to financial restructuring.

Known for targeting acquisitions for revenue growth and cost cutting, 3G Capital, which engineered the Burger King acquisition of Tim Hortons, controls about 42.6% of the voting shares in Restaurant Brands, according to a public filing. The investment firm, paired with investor Warren Buffett's Berkshire Hathaway, previously helped engineer the merger of Kraft and Heinz.

It was not immediately clear whether Restaurant Brands plans to close any locations, cut any jobs, combine any corporate operations or merge purchasing operations. The company did not respond to a request seeking comment and an interview.

But the Popeyes brand "will be managed independently," Schwartz said on a conference call without taking questions.

Restaurant Brands has placed Burger King on a growth track by reemphasizing value in its product lineup, UBS analyst Dennis Geiger said Feb. 13 in a research note.

The average Popeyes location has $1.4 million in annual revenue, Schwartz said. Franchisee profitability averaged $340,000 per location in 2015, according to a public filing, up from $188,000 in 2008.

The company opened 216 net new stores in 2016 after opening 219 in 2015.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

Read or Share this story: http://usat.ly/2lqDiRS</s>Restaurant Brands International Inc. said it's buying Popeyes Louisiana Kitchen Inc. for $1.8 billion, bringing the fried chicken chain under the same corporate umbrella as Burger King and Tim Hortons.

The move fits with Restaurant Brands' approach of taking over well-known fast-food chains it sees as having the potential for significant expansion. The deal gives Popeyes shareholders $79 per share, representing a 19% premium from its closing price on Friday.

Restaurant Brands was created after Burger King, controlled by Brazilian investment firm 3G Capital, bought Tim Hortons in 2014. The corporate name it took signaled that the company would add to its stable of fast-food chains. Since then, Restaurant Brands has been striking deals with local operators to open additional Burger Kings around the world and expand Tim Hortons in the U.S.

Restaurant Brands International, which is based in suburban Toronto, makes money from fees it charges franchisees who operate Burger King and Tim Hortons restaurants. It has more than 20,000 locations globally, and Popeyes would give it about another 2,600.

By comparison, McDonald's Corp. had more than 36,800 locations around the world at the end of 2016.

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Most Super Bowl LI commercials were shot in L.A.; 84 Lumber's spot was filmed in Mexico</s>NEW YORK (CBSMiami/AP) — The parent company of the “Home of the Whopper” has a taste for some fried chicken.

Restaurant Brands International, which oversees Burger King and Tim Hortons, is buying Popeyes Louisiana Kitchen for $1.8 billion.

The move fits with Restaurant Brands’ approach of taking over well-known fast-food chains it sees as having the potential for significant expansion. The deal gives Popeyes shareholders $79 per share, representing a 19 percent premium from its closing price on Friday.

Restaurant Brands was created after Burger King, controlled by Brazilian investment firm 3G Capital, bought Tim Hortons in 2014. The corporate name it took signaled that the company would add to its stable of fast-food chains. Since then, Restaurant Brands has been striking deals with local operators to open additional Burger Kings around the world and expand Tim Hortons in the U.S.

Restaurant Brands International Inc., which is based in suburban Toronto, makes money from fees it charges franchisees who operate Burger King and Tim Hortons restaurants. It has more than 20,000 locations globally, and Popeyes would give it about another 2,600.

By comparison, McDonald’s Corp. had more than 36,800 locations around the world at the end of 2016.</s>Restaurant Brands International Inc., the owner of Burger King, is in advanced talks with Popeyes Louisiana Kitchen Inc. about a takeover of the fried-chicken chain, according to people familiar with the matter.

Negotiations between the companies are ongoing, and a transaction could be announced as early as this week, said the people, who asked not to be identified as the details aren’t public. Talks could still fall apart, the people said. Popeyes has a market value of about $1.37 billion, while Restaurant Brands is worth $25 billion.

The companies held talks in the summer but were unable to reach an agreement at the time, the people said. Burger King renewed its interest in Popeyes late last week and made an offer that was mainly cash, one of the people said. The fried-chicken chain then contacted possible counter bidders over the weekend, however no competitive offer materialized, the person said.

A spokeswoman for Popeyes declined to comment. A representative for Restaurant Brands didn’t immediately respond to a request outside of regular business hours.

Dealmaking in the restaurant industry picked up last year, with a total of $7.3 billion of acquisitions announced, compared with $4.2 billion in 2015, according to data compiled by Bloomberg. JAB Holding Co., the investment company of Austria’s billionaire Reimann family, agreed to buy Krispy Kreme Doughnuts Inc. for $1.35 billion in May, while Heineken NV teamed up with Patron Capital to bid for U.K. pub operator Punch Taverns Plc’s shares in December.

Restaurant Brands, backed by Brazilian private equity firm 3G Capital, was created in 2014 when Burger King Worldwide Inc. bought Tim Hortons Inc. and relocated its headquarters to the coffee chain’s home country of Canada. Warren Buffett’s Berkshire Hathaway Inc. was brought in by 3G to provide financing for the deal, and still holds a stake in Restaurant Brands.

Popeyes, based in Atlanta, can trace its roots back to a single fried-chicken shop opened in New Orleans in 1972. It operated and franchised more than 2,600 restaurants in the U.S. and 26 other countries as of October 2, according to its third-quarter earnings report.</s>Mardi Gras is still a week away, but it looks like the Burger King is ready to take a stroll down Bourbon Street.

Restaurant Brands, the parent of Burger King and the Tim Hortons doughnut and coffee chain, announced Tuesday that it is buying Popeyes Louisiana Kitchen, the company famous for its Cajun cuisine, for $1.8 billion.

The deal values Popeyes at $79 a share, nearly 20% higher than where the stock closed Friday. Shares of Popeyes (PLKI), living up to the company's "Louisiana Fast" motto, quickly rose 19% Tuesday morning to just under $79.

Reports of a Popeyes takeover surfaced last week, although there was also speculation that Restaurant Brands was considering buying another fast food chicken chain, El Pollo Loco (LOCO). El Pollo Loco shares fell more than 1% Tuesday.

Restaurant Brands CEO Daniel Schwartz said in a statement that the company looks forward to "taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the U.S. and around the world."

Popeyes has more than 2,600 restaurants around the globe. The company was founded in New Orleans in 1972, but its corporate headquarters is now in Atlanta.

Popeyes CEO Cheryl Bachelder also noted that the "high trust partnership that we enjoy with our franchise owners" was a plus for Restaurant Brands.

Related: Popeyes CEO on fast food wage hikes: 'Life will go on'

I spoke with Bachelder in November 2015 about that partnership. At the time, many big fast food chains were starting to worry about how rising minimum wages across the country could be a problem for franchisees.

"We will adjust to increased costs just like we have before," she said. "Life will go on. There's been too much hubbub about it." She added: "Profits make you happy. Our franchisees have been making a lot more money."

If that trend continues, Popeyes could help make Restaurant Brands an even more formidable threat to top rivals McDonald's (MCD), Wendy's (WEN) and KFC owner Yum! Brands (YUM).

Restaurant Brands has been a much hotter stock than those three lately, thanks in large part to stronger sales at Burger King.

The company has made a name for itself recently with gimmicky food mashups, such as onion ring-shaped chicken fries, Cheetos Chicken Fries, burgers with red and black buns and the Whopperito. Yes, that's the marriage of a burger and a burrito.

Related: The great American McDonald's comeback may be over

Adding Popeyes to the mix gives Restaurant Brands an even bigger presence in the red hot, but increasingly crowded, market for chicken franchises.

In addition to KFC and El Pollo Loco, there's competition from Bojangles (BOJA), Wingstop (WING) and upscale burger joint Shake Shack (SHAK), as well as privately held chains with cult followings like Chick-fil-A and Zaxby's.

Wall Street seemed to think the deal will be good for Restaurant Brands as well. Shares rose more than 7% Tuesday. The stock is up more than 20% in 2017.

So it's a win for two influential investors that back Restaurant Brands, too. Bill Ackman's Pershing Square owns an 18% stake in the company. And Warren Buffett's Berkshire Hathaway has a nearly 4% stake.</s>Restaurant Brands International Inc. agreed to buy Popeyes Louisiana Kitchen Inc. for about US$1.8 billion, adding a fried-chicken chain to its lineup of burgers and doughnuts.

The cash offer of US$79 a share represents a 19 per cent premium to Popeyes’ closing price on Friday. The deal is expected to close by early April, the companies said.

The acquisition would be the first major deal for Restaurant Brands, which was formed in the 2014 merger of Burger King and Tim Hortons. The company’s managers have long said they would consider taking over other brands, where they could boost profit by cutting costs and selling locations to franchisees. Restaurant Brands, backed by Brazilian private equity firm 3G Capital, also may look to expand the chain abroad.

“Restaurant Brands may be able to cut selling, general and administrative expenses in half in the next two years, and its private equity partners can boost international expansion as spicy flavors, chicken and rice tend to travel well,” said Michael Halen, an analyst at Bloomberg Intelligence. “It fits right into the 3G playbook.”

Restaurant Brands shares rose 5.4 per cent to US$56.80 at 9:33 a.m. in New York. The stock already was up 13 per cent this year through Friday. Popeyes surged 19 per cent to US$78.79.

Popeyes, which has more than 2,600 restaurants in the U.S. and 25 other countries, has performed well lately, with the stock gaining for eight years in a row. Chief Executive Officer Cheryl Bachelder has improved relationships with franchisees, sped up service times and played up the brand’s New Orleans heritage with foods such as Magnolia Blossom Chicken. The chain will continue to be independently managed in the U.S., Restaurants Brands said.

The transaction is being paid for with cash on hand and a financing commitment from JPMorgan Chase & Co. and Wells Fargo & Co. The company was advised by Paul, Weiss, Rifkind, Wharton & Garrison. Popeyes received financial advice from UBS AG and Genesis Capital and got legal counsel from King & Spalding.</s>TORONTO – The parent company of Tim Hortons and Burger King is making a move to add fried chicken to its repertoire with an offer to buy Popeyes in a friendly deal.

Restaurant Brands International (TSX:QSR) said Tuesday it will pay US$1.8 billion for the Louisiana-style fried chicken chain. That translates to US$79 per share in Popeyes Louisiana Kitchen Inc., which trades on the Nasdaq composite.

“We’re really excited we’re adding another iconic and successful brand, one that has really rich Louisiana heritage that’s going to resonate with guests all around the world,” RBI CEO Daniel Schwartz said in an interview.

The deal doesn’t come as a surprise to analysts, said Will Slabaugh, managing director at Arkansas-based Stephens Inc.

“I think it was always hinted at that there might be more brands in the future,” he said, referencing RBI’s successful 2014 acquisition of Tim Hortons that led analysts to believe RBI could have a strong platform to roll in other quick-service restaurants.

However, there aren’t many chains that fit RBI’s criteria for acquisition. Slabaugh said the company is likely looking for chains that are attractive to consumers around the world — not just Americans.

Schwartz said RBI plans to accelerate Popeyes’ growth in the U.S. and beyond. The company currently has more than 2,600 restaurants, mostly in America, with 621 international locations.

“There is no reason that this brand can’t be multiple times its size in many, many years from now,” said Schwartz, adding that Popeyes is currently growing at a similar pace to Burger King when RBI first acquired that fast-food chain.

In 2010, Burger King was adding 173 net new restaurants globally per annum. Last year, that number grew to 735.

Schwartz credits that to RBI’s master franchisee joint venture growth model, which gives one or a group of franchisees the rights to expand the chain in a specific area. He said RBI would use the same model to grow Popeyes, whose footprint he says is underpenetrated compared to competitors like KFC.

Popeyes shares soared on the news, reaching a high of US$79.03 in early morning trading, a jump of about 19.5 per cent from Friday’s close. RBI stock also gained value, reaching a high of C$76.29 on the S&P/TSX composite, up nearly eight per cent.

The transaction will deliver immediate value to Popeyes shareholders, said CEO Cheryl Bachelder in a news release jointly issued with RBI.

The proposed takeover requires various approvals and support from more than half of Popeyes’ shareholders, but RBI expects the deal to close by early April. Popeyes’ management is expected to continue to operate the U.S. business.

RBI has its headquarters in Oakville, Ont., west of Toronto, with more than 20,000 restaurants in more than 100 countries and U.S. territories.

It’s unlikely this is the last major acquisition RBI will make, said Slabaugh, though he doesn’t expect any more announcements in the near future.

“Over time, I definitely expect them to acquire more brands.”

Schwartz said “it’s premature” to look beyond the current deal.</s>Popeyes Louisiana Kitchen Inc (NASDAQ: ) stock was up on Tuesday following the announcement of Restaurant Brands International Inc’s (NYSE: ) takeover plans.

Popeyes Louisiana Kitchen Inc and Restaurant Brands International Inc have reached an agreement for the former to be acquired by the latter. The deal will have QSR paying $1.8 billion for PLKI.

The $1.8-billion price for Popeyes Louisiana Kitchen Inc will have Restaurant Brands International Inc paying $79 per share in cash for the fried chicken restaurant chain. This is a 27% premium to PLKI’s 30-trading day Volume Weighted Average Price as of Feb. 10, which was when talk of the acquisition reached the media.

Restaurant Brands International Inc’s, the owner of Burger King and Tim Hortons, will be using cash on hand and funds from a commitment for the deal. JPMorgan Chase & Co. (NYSE: ) and Wells Fargo & Co (NYSE: ) are the providers of the additional funds.

Restaurant Brands International Inc says that it plans to keep Popeyes Louisiana Kitchen Inc independently managed in the United States following the completion of the deal. It plans to quickly expand the restaurant chain’s presence in the U.S. and other countries.

The deal between Popeyes Louisiana Kitchen Inc and Restaurant Brands International Inc is expected to close in early April 2017. However, it will first need to complete customary closing conditions. This includes regulatory approval and obtaining majority shares in a tender offer to PLKI shareholders. Once this is complete, QSR will obtain all other outstanding shares for the same price via a a second-step merger.

PLKI stock was up 19% and QSR stock was up 6% as of Tuesday morning.</s>TORONTO — Is there a chicken-flavoured donut in our future?

The parent company of Tim Hortons and Burger King is making a move to add fried chicken with an offer to buy Popeyes in a friendly deal.

Restaurant Brands International said Tuesday it will pay US$1.8 billion for the Louisiana-style fried chicken chain. That translates to US$79 per share in Popeyes Louisiana Kitchen Inc., which trades on the Nasdaq composite.

“We’re really excited we’re adding another iconic and successful brand, one that has really rich Louisiana heritage that’s going to resonate with guests all around the world,” said RBI CEO Daniel Schwartz in an interview.

Schwartz said RBI plans to accelerate Popeyes’ growth in the U.S. and internationally. The company currently has more than 2,600 restaurants, mostly in the U.S., with 621 international locations.

“There is no reason that this brand can’t be multiple times its size in many, many years from now,” said Schwartz, adding that Popeyes is currently growing at a similar pace to Burger King when RBI first acquired that fast-food chain.

In 2010, Burger King was adding 173 net new restaurants annually. Last year, that number grew to 735.

Schwartz credits that to RBI’s master franchisee joint venture growth model, which gives one or a group of franchisees the rights to grow the chain in a specific area. He said RBI would use the same model to grow Popeyes, whose footprint he says is underpenetrated compared to competitors like KFC.

Popeyes shares soared on the news, reaching US$79.03 in early morning trading, a jump of about 19.5% from Friday’s close. RBI stock was at C$74.93 on the S&P/TSX composite, up 6%.

The transaction will deliver immediate value to Popeyes shareholders, said CEO Cheryl Bachelder in a news release jointly issued with RBI.

The proposed takeover requires various approvals and support from more than half of Popeyes’ shareholders, but RBI expects the deal to close by early April. RBI’s management is expected to continue to operate the U.S. business.

RBI has its headquarters in Oakville, west of Toronto, and more than 20,000 restaurants in more than 100 countries and U.S. territories.</s>The owner of Burger King and Tim Hortons, Restaurant Brands International, is buying Popeyes Louisiana Kitchen for $79 per share, or $1.8 billion. "Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world," Restaurant Brands International CEO Daniel Schwartz said in a statement.

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The parent company of Burger King announces plans to purchase Popeyes Louisiana Kitchen, operator of the Popeyes chicken restaurant chain in a US$1.8 billion deal.