Restaurant Brands International (TSX:QSR.B) is buying Firehouse Subs for $1 billion U.S. in cash.
Jacksonville, Florida-based Firehouse Subs has 1,200 restaurants across North America and has seen its year-to-date same-store sales rise 20% through October compared to the same period in 2019 before the pandemic.
Firehouse Subs said it expects to generate $1.1 billion U.S. in full-year sales and anticipates approximately $50 million U.S. in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Restaurant Brands said it’s planning to fund the deal with cash on hand and debt, and it expects the deal to close in the coming months.
The deal adds to Restaurant Brands International’s stable of brands that includes Tim Hortons, Popeyes Louisiana Kitchen and Burger King.
Restaurant Brands International said Firehouse Subs would continue to be run by its current chief executive officer, Don Fox, and Chief Financial Officer Vincent Burchianti.
