Burger King parent Restaurant Brands International (TSX:QSR, NYSE:QSR) has inked a deal to buy the Carrols Restaurant Group, the largest Burger King franchisee in the US, for $1 billion.
Carrols operates 1,022 locations across 23 states, along with 60 Popeyes locations in 6 states.
The deal values Carrols at $9.55 per share. Shares of the company climbed 13% to $9.52 Tuesday morning, while Restaurant Brands stock fell 3% to $76.06.
The move is part of a strategy to grow sales and improve franchisee profits, according to reports. Specifically, Burger King expects to invest $500 million to remodel 600 of the newly acquired locations.
In addition to Burger King and Popeyes, Restaurant Brands also owns Tim Hortons (TSX:THI) and Firehouse Subs.