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. Shares of Popeyes (PLKI), living up to the company's "Louisiana Fast" motto, quickly rose 19% Tuesday morning to just under $79. 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. 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.
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.