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Burger King's parent Restaurant Brands International has bought Firehouse Subs sandwich chain for $1 billion in an all-cash deal through a combination of debt and the cash it has on hand.
Restaurant Brands expects to close the deal over the next few months.
The Firehouse’s headquarters will remain in Jacksonville, Florida. CEO Don Fox and CFO Vincent Burchianti are expected to keep their posts.
Shares of Restaurant Brands rose over 1 percent following the news of its Firehouse Subs acquisition. It has dropped 4 percent this year to a market value of $27.1 billion.
Firehouse Subs is now the fourth brand in Restaurant Brands’ portfolio, which includes Tim Hortons and Popeyes Louisiana Kitchen.
Restaurant Brands CEO Jose Cil said they see tremendous potential to accelerate Firehouse Subs' growth in the US and international markets with its development expertise, global franchisee network, and digital capabilities.
Firehouse Subs has roughly 1,200 locations across the US and expects $1.1 billion in systemwide sales for 2021.
For the first 10 months of the year, Firehouse Subs' same-store sales jumped 20 percent compared to its figures two years ago.
