Burger King parent acquiring Carrols Restaurant Group for $1B

Restaurant Brands International (QSR), the company that owns Burger King and Tim Hortons, is buying Carrols Restaurants Group (TAST) in a $1 billion deal. Carrols is the largest Burger King franchisee in the United States.

Yahoo Finance's Madison Mills and Josh Lipton break down the market reaction to the deal.

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Editor's note: This article was written by Stephanie Mikulich

Video Transcript

MADISON MILLS: Shares of Restaurant Brands International, that's the parent company of Burger King, falling in today's trade. The company acquiring its largest franchisee, Carrols Restaurant Group, for $1 billion. Now, I want to mention that Carrols is climbing as much as 13%, they're at their highest highs since 2019, after that agreement to be acquired by that Burger King parent restaurant for the total enterprise value, again, of $1 billion.

But not a lot of positivity on the street when it comes to our brands trending ticker there, QSR, so maybe a little bit of mispricing when it comes to that deal, a question about the cost there, Josh. But interesting to see that there is a big reward on the street for Carrols in response to this news.

JOSH LIPTON: Yeah, and reports, knowing this is really kind part of this broader effort, I guess, at this company, kind of, right, remodeling locations, improving customer experience. And the plan, apparently, is once the acquisition closes, Burger King then re-franchises most of the stores to new or existing smaller owners. Stocks down today, up about 13%, 14% over the past year.