Word of a major acquisition has been sent out across the newswires, making its way to our desks here at Deli Market News. Restaurant Brands International (RBI) and Firehouse Restaurant Group have announced that they have reached an agreement for RBI to acquire Firehouse Subs for $1 billion in an all-cash transaction.
“Firehouse Subs is a special brand with a talented team, impressive culture, and community focus that resonates with guests and closely aligns with our core values at RBI,” José Cil, Chief Executive Officer of RBI commented. "We see tremendous potential to accelerate United States and international growth at Firehouse Subs with RBI's development expertise, global franchisee network, and digital capabilities. We are excited to welcome the Firehouse Subs team to the RBI family and to continue our ambitious dream of building the world's most loved restaurant brands."
The transaction will offer significant long-term unit growth potential to drive returns for all stakeholders, according to a release, and is expected to be immediately accretive to RBI’s diluted net earnings per share.
Founded in Jacksonville, Florida, in 1994 by brothers and former firefighter Chris and Robin Sorensen, Firehouse Subs has built a culture rooted in public service and quality, even establishing its non-profit Firehouse Subs Public Safety Foundation®. Over the years, the brand has evolved into a strong and growing player in the $30-billion U.S. quick service restaurant (QSR) sandwich category and since 2010 has tripled its number of restaurants to nearly 1,200 locations. The company has also quadrupled its system-wide sales to an expected $1.1 billion for 2021.
“At Firehouse Subs, we are united in our commitment to and passion for hearty and flavorful food, heartfelt service, and public safety. Joining the RBI family of brands provides an energizing opportunity to assist more communities, not only across America and Canada, but around the globe,” said Don Fox, Chief Executive Officer of Firehouse Subs. “The donations we generate for our Foundation through our restaurants means changing and saving lives, so we can't wait to accelerate our journey at home and around the world.”
Firehouse Subs’ momentum has extended into 2021, with October year-to-date U.S. comparable sales up 20 percent from 2019. The brand also benefits from a strong family of franchisees that own and operate 97 precent of its restaurants across 46 states, Canada, and Puerto Rico. Due to its growth, the company is anticipated to generate roughly $50 million of 2021E adjusted EBITDA.
The sub chain has several times been rated the #1 brand in its QSR sandwich category for food quality and has a strong brand-love rating. Driven by its Foundation and support, Firehouse Subs has now granted $62.5 million in essential life-saving equipment and other support to public safety organizations.
Firehouse Subs will add a strong presence to RBI’s existing portfolio of well-known QSR brands which include Tim Hortons®, Burger King®, and Popeyes®.
To read more about the acquisition and its details, click here.
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