Burger King parent to acquire Firehouse Subs for $1 billion
Restaurant Brands International Inc. is adding a fourth brand to its portfolio.
The parent company of Burger King, Tim Hortons and Popeyes Louisiana Kitchen has agreed to acquire sub sandwich chain Firehouse Subs for $1.0 billion in cash. The acquisition is expected to be earnings accretive immediately.
Founded in 1994 by brothers and former firefighters Chris Sorensen and Robin Sorensen, Firehouse Subs has approximately 1,200 locations across the United States. The company anticipates $1.1 billion in system-wide sales for 20211. For the first 10 months of the year, same-store sales rose 20% compared with the same period in 2019.
Similar to the other chains in the Restaurant Brands portfolio, the majority (97%) of Firehouse Subs locations are operated by franchisees.
Restaurant Brands plans to fund the all-cash deal through a combination of debt and using the cash it has on hand. Following the closing of the transaction, Firehouse Subs will remain based in Jacksonville, Florida, and will continue to be managed by CEO Don Fox and CFO Vincent Burchianti.
"Firehouse Subs is a special brand with a talented team, impressive culture and community focus that resonates with guests and closely aligns with our core values at RBI,” said José Cil, CEO, Restaurant Brands, which operates more than 27,000 restaurants in more than 100 countries “We see tremendous potential to accelerate U.S. and international growth at Firehouse Subs with RBI's development expertise, global franchisee network and digital capabilities.”
Supporting local communities is a core pillar of Firehouse Subs' operating philosophy and a key differentiator for the brand in the sandwich quick-serve restaurant category, according to Restaurant Brands. The Firehouse Subs Public Safety Foundation has granted $62.5 million to public safety organizations across 49 states,
“Joining the RBI family of brands provides an energizing opportunity to assist more communities, not only across America and Canada, but around the globe,” said Fox. “The donations we generate for our Foundation through our restaurants means changing and saving lives, so we can't wait to accelerate our journey at home and around the world."
Restaurant Brands had approximately $34 billion in annual system-wide sales in 2020.