In a civil lawsuit filed earlier this month, Restaurant Brands International Inc. used its controlling interest in Carroll’s Restaurant Group Inc., the Burger King and Popeyes franchise that the RBI acquired in May, to give the company 1 billion yen. He is accused of coercing the purchase of dollars.
A pension fund sold Toronto-based Restaurant Brands International, which owns Burger King, Popeyes Louisiana Kitchen, Tim Hortons and Firehouse Subs, to publicly traded Carroll’s at an undervalued deal. He is suing for coercion.
The civil suit was filed Oct. 7 in Delaware Court of Chancery by the Plymouth County Retirees Association.
According to Bloomberg Law, the lawsuit alleges that the RBI blocked the franchise owner’s expansion and suggested it would give investors a “Hobson’s Choice” of exiting the company or accepting the only deal it could get. I am doing it.
RBI completed its acquisition of Carrolls in May.
Restaurant Brands International offered $9.55 per share in an all-cash deal announced in January to acquire approximately 600 Carol’s-owned restaurants as part of its “Reclaim the Flame” plan announced in fall 2022. He said he would spend $500 million to revamp the restaurant’s image.
The company also announced that it will refranchise most of its acquired portfolio to new or existing small franchise operators over the next seven years.
A representative for Restaurant Brands International did not respond by press time.
Carroll’s operated 1,023 Burger King restaurants in 23 states and 59 Popeyes restaurants in six states. Carroll’s had operated Burger King restaurants since 1976 and Popeyes restaurants since 2019.
Founded in 1954, Burger King operates and franchises more than 19,000 restaurants in more than 120 countries and territories.
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