Burger King parent Restaurant Brands International buys Firehouse Subs for $1 billion

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  • Restaurant Brands International announced Monday that it has purchased Firehouse Subscriptions for $1 billion.
  • The sandwich chain has approximately 1,200 locations across the US and expects $1.1 billion in system-wide sales for 2021.
  • Shares of Restaurant Brands rose 2% in premarket trading on the news.

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Burger King’s parent restaurant Brands International announced Monday that it has purchased Firehouse Subscriptions for $1 billion.

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Shares of the restaurant group rose 2% in premarket trading on the news. The stock is down 4% this year, giving it a market value of $27.1 billion.

The sandwich chain is now the fourth brand in the portfolio of restaurant brands, which also includes Popeyes Louisiana Kitchen and Tim Hortons. The restaurant company has long been rumored to be on the hunt for another fast-food chain, though reviving Tim Hortons and accelerating the growth of Poppies has kept it busy.

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“We see tremendous potential to accelerate US and international growth at Firehouse Subs with RBI’s growth expertise, global franchise network and digital capabilities,” Restaurant Brands CEO Jose Sil said in a statement.

Firehouse Subscriptions was founded in 1994 by brothers and former firefighters Chris and Robin Sorensen. The chain has approximately 1,200 locations across the US and is expected to generate $1.1 billion in system-wide sales for 2021. For the first 10 months of the year, its same-store sales climbed 20% compared to the same time two years ago.

Like other chains of restaurant brands, the majority of Firehouse Subscription locations are operated by franchisees.

Restaurant Brands said it will fund the all-cash deal using a combination of debt and the cash it has. After the transaction closes, Firehouse will remain headquartered in Jacksonville, Florida, and is expected to be headed by CEO Don Fox and CFO Vincent Burchianti.

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