ASX-listed fast food retailer Restaurant Brands has made a $US73 million ($105.6 million) expansion into the home of fast food with the purchase of 70 US stores.
The New Zealand-based company, which is dual-listed on the Australian Securities Exchange, announced on Monday it had entered into an agreement with a US KFC franchisee to buy 59 KFC and 11 Taco Bell stores in Southern California.
Company chief executive Russel Creedy said the acquisition would give Restaurant Brands an “immediate critical mass” of stores in North America. The company will continue to provide employment for all 1100 part-time and 500 full-time staff in the US.
“This acquisition brings with it some very experienced and committed employees who we welcome to the Restaurant Brands family and we look forward to building the business further with them in what is a market with considerable potential for future growth,” Mr Creedy said.
The US businesses generate annual revenue of $US95 million and have trailing 12-month store earnings of in excess of $US12 million.
The fully debt-funded $US73 million purchase will see Restaurant Brands foray into the home country of KFC and Taco Bell’s parent company Yum! Brands, which is required to approve the deal before its completion.