Big Moves In China: Restaurant Brands Sizzles With Popeyes China, Tims China Deals
Portfolio Pulse from Shivani Kumaresan
Restaurant Brands International Inc. (NYSE:QSR) has announced two strategic transactions in China, acquiring Popeyes China and co-investing in TH International Limited (NASDAQ:THCH), also known as Tims China. The total capital outlay for these transactions will be up to $45 million, with plans to accelerate restaurant growth and establish local partnerships.
July 01, 2024 | 2:39 pm
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Restaurant Brands International Inc. (NYSE:QSR) has acquired Popeyes China and co-invested in Tims China, with a total capital outlay of up to $45 million. The company plans to accelerate restaurant growth and establish local partnerships.
The acquisition and investment in China indicate a strong growth strategy in one of the largest quick-service restaurant markets. This could positively impact QSR's stock price in the short term as investors react to the potential for increased market share and revenue.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
TH International Limited (NASDAQ:THCH), also known as Tims China, will receive up to $50 million in investment from Restaurant Brands and Cartesian Capital. This will increase Restaurant Brands' equity ownership in Tims China to up to 18% and allow it to appoint two directors to the Tims China Board.
The significant investment from Restaurant Brands and Cartesian Capital will support Tims China's expansion and operational growth. This could positively impact THCH's stock price as the company benefits from increased financial backing and strategic oversight.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80