Don’t expect Burger King to be frying Popeyes’ chicken.
Burger King/Tim Hortons parent Restaurant Brands was interested in buying Popeyes Louisiana Kitchen a few months ago, but walked away from the deal, a source close to the situation said.
Reuters on Monday reported that 3G Capital-controlled Restaurant Brands had approached Popeyes about a possible acquisition, causing Popeye’s shares to rise 7 percent, to close at $70.82.
Restaurant Brands was in talks with Popeyes in October and November, but then passed on it, partially because the chicken chain’s third-quarter results released Nov. 9 lifted its shares nearly 10 percent, from $55.77 to $60.57 making its shares too expensive, the source said.
Popeye’s shares have only gotten pricier since.
While it is possible the two sides have rekindled talks, it is doubtful, the source said.
“There are windows in time when mergers happen,” a second source close to the situation said, declining to provide more detail, suggesting that the window for this merger has closed.
Restaurant Brands, which also owns doughnut maker Tim Hortons, is still interested in adding a new concept.
“I know they want to acquire additional restaurant concepts,” a source at Restaurant Brands told The Post.
“That was the fundamental reason they created this umbrella company Restaurant Brands [in December 2014].”
3G Capital wants a brand that is well represented in America but not globally, and which does not compete with Burger King or Tim Hortons. Possibilities include pizza, Mexican and chicken concepts, the Restaurant Brands source said.
Restaurant Brands has recently said it is comfortable adding leverage that gives it the ability to spend up to $2 billion on acquisitions, Bloomberg reported.
Popeyes and Restaurant Brands said separately that they do not discuss market rumors.
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