What Happened: Shares of fast food franchisee Carrols Restaurant Group (NASDAQ:TAST) jumped 13.9% in the morning session after reports that Restaurant Brands International (NYSE:QSR) (the parent company of Burger King) is acquiring the remaining shares of the company (Carrols) for $9.55 per share, totaling around $1 billion.
Burger King plans to invest around $500 million, funded by Carrols' operating cash flow, to renovate approximately 600 of the acquired restaurants.
"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," said Tom Curtis, president of Burger King U.S. and Canada.
The transaction is expected to be finalized in the second quarter of 2024, pending necessary approvals.
Is now the time to buy Carrols? Find out by reading the original article on StockStory.
What is the market telling us: Carrols's shares are a little volatile and over the last year have had 51 moves greater than 5%. But moves this big are very rare even for Carrols and that is indicating to us that this news had a significant impact on the market's perception of the business.
Carrols is up 25.4% since the beginning of the year. Investors who bought $1,000 worth of Carrols's shares 5 years ago would now be looking at an investment worth $1,033.
