Restaurant Brands International Inc. will expand its presence in China through the acquisition of Popeyes China and a co-investment in Tims China, according to a press release.
The moves reflect RBI’s confidence in the Chinese market, one of the world’s largest for quick-service restaurants. RBI will invest a total of up to $45 million in the two transactions.
RBI acquired the Popeyes China business from Tims China for $15 million. Popeyes China, which opened its first restaurant in August 2023, currently has 14 locations in Shanghai. RBI plans to accelerate growth by investing in local teams and restaurant development. The company also intends to establish a traditional master franchise structure with local partners in the long term, similar to its operations in other international markets.
To support Tims China’s growth, RBI and Cartesian Capital will co-invest up to $50 million in the company through three-year convertible notes. RBI will hold the right to appoint two directors to the Tims China board and its ownership stake could increase to 18% upon conversion of the notes.
“China is one of the most compelling long-term market opportunities for both our Popeyes and Tim Hortons brands,” Rafael Odorizzi, president of Asia Pacific, said in the press release. “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. Today’s announcement allows Tims China to redouble its focus on quality restaurant development and providing Chinese consumers with our high quality Tims coffee and food offerings.”
Source: QSR Web
