Why is Burger King investing $1 billion to buy out 1,022 of its own restaurants?

The parent company of Burger King is spending a billion dollars to buy out its biggest franchisee in the US as a part of a plan to modernize its locations.

Restaurant Brands International will acquire all of the shares it doesn’t already own of Carrols Restaurant Group, which operates 1,022 Burger King restaurants all over the country. This is equivalent to around 15% of all branches of the fast food chain in the United States. Carrols also runs 60 Popeyes restaurants in six states.

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Burger King attempting to ‘Reclaim the Flame’

In a statement, Tom Curtis, President of Burger King US and Canada, said that the move is intended to update the chain’s facilities.

“This acquisition is an exciting accelerator to our ‘Reclaim the Flame’ plan that is focused on relentlessly pursuing a better experience for our guests”, said Curtis.

“We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our guests.”

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Burger King pouring resources into advertising and renovation

The latest investment follows the company’s infusion of $400 million into marketing and modernization efforts announced in September 2022. Their plans include purchasing new kitchen equipment and making use of digital menu boards.

Restaurant Brands intends to spend half a billion on renovating about 600 of the locations the company is acquiring from Carrols.

Burger King is attempting to catch up to its competitors, including fast food industry leader McDonald’s, which had announced a few year ago that it was spending $6 billion to update its restaurants in the US.