Restaurant Brands International (RBI), which ranks as one of the world’s largest quick service restaurant operators, has announced the acquisition of Popeyes China, and the co-investment with Cartesian Capital into the business of TH International Limited (Tims China). The total amount of capital outlay will reportedly be up to $50 million.
The Toronto, Canada-headquartered company, in a statement issued on July 1, said the two transactions reflect RBI’s confidence in China, one of the largest QSR markets globally, and its commitment to drive growth in the market. Its optimism comes at a time when the PRC economy is facing challenges spurred in part by a major real estate crisis and cutbacks in consumer spending.
“There’s no debating, it is a tough macro environment in China right now,” said CFO Sami Siddiquid during an investor conference last month.
RBI has agreed to acquire the Popeyes China business from Tims China on a cash-free debt-free basis based on an enterprise value of $15 million. Following the transaction, the Toronto, Canada-headquartered company will own and operate Popeyes China, which opened its first restaurant in August 2023 and has 14 outlets in Shanghai today. The pace of restaurant growth is expected to ramp up through investments in local teams and restaurant development. Longer-term, RBI expects to bring on local partners to form a more traditional master franchisee, similar to other Popeyes international markets.
“China is one of the most compelling long-term market opportunities for both our Popeyes and Tim Hortons brands,” said Rafael Odorizzi, president of Asia Pacific operations. “Popeyes China is off to a strong start and we are excited to unlock its development potential in one of the largest chicken QSR markets globally.”
These transactions follow the recent appointment of Patrick Siewert as senior advisor for Asia-Pacific business and underscore RBI’s commitment to growth in the region.
About Popeyes and RBI
Restaurant Brands International, which owns approximately 30,000 restaurants in more than 120 countries and territories, rang up over $40 billion in system-wide sales last year. In addition to Popeyes and Time Hortons, among other well known brands in its portfolio are Burger King and Firehouse Subs. Popeyes, which specializes in New Orleans-style spicy chicken and Cajun popcorn shrimp, has also introduced menus tailored to the preferences of Chinese consumers.
