Why would Burger King invest $1 billion to acquire 1,022 of its restaurants?

Burger King's parent company is spend a billion dollars Acquisition of largest U.S. franchisee as part of plan to modernize the place.

Restaurant Brands International will acquire all of the shares of Carroll's Restaurant Group that it does not already own. Operates 1,022 Burger King restaurants All over the country.This corresponds to approximately 15% of all branches American fast food chain. Carroll's also operates her 60 Popeyes restaurants in six states.

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Burger King is trying to 'bring back the flame'

Tom Curtis, president of Burger King U.S. and Canada, said in a statement that the move is aimed at: Update chain equipment.

“This acquisition is the impetus to fuel our 'Reclaim the Flame' plan, which is focused on continually seeking a better experience for our guests,” said Curtis.

“We are rapidly renovate these restaurants Over the next five years, we will put them back into the hands of motivated people. local franchisees To provide our guests with a great experience. ”

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Burger King pours resources into advertising and renovations

The latest investment follows the company's infusion. $400 million in marketing and modernization efforts Announced in September 2022.Plans also include acquisitions new kitchen equipment and take advantage of it digital menu board.

The restaurant brand will undergo a roughly $500 million renovation. 600 of them The company is acquiring it from Carroll's.