Burger King's parent company is rumored to be considering buying Papa John's. Here's what the chairman says he looks for in a brand. (PZZA)
- Papa John's shares rose on Wednesday following a report that Restaurants Brands International — the parent company of Burger King, Tim Hortons, and Popeye's — is considering acquiring the pizza chain.
- The same day, RBI executives discussed on a call with investors what the company looks for in acquisition targets.
- "We look at companies ... that are iconic brands that we can grow significantly for the long run," executive chairman Daniel Schwartz said.
Burger King's parent company is keeping its eye out for an "iconic" sibling brand.
On Wednesday, Papa John's shares rose by more than 7% after a report from DealReporter that Restaurant Brands International is considering buying the pizza chain, The Street reported. RBI is the parent company of Burger King, Tim Hortons, and Popeyes.
The same day, RBI executives discussed on a call with investors what the company looks for in acquisition targets.
"We've always been opportunistic when it kind of comes to M&A," newly appointed executive chairman Daniel Schwartz said.
Schwartz was promoted from RBI's CEO to the company's executive chairman on Wednesday. According to RBI, the new role is intended to allow Schwartz to focus more time on areas including strategic decisions, capital allocation, and M&A opportunities.
"There's no set formula, but we like to be opportunistic, and we're always looking at valuable uses of our capital," Schwartz said.
When pushed by another analyst on how the company is thinking about its M&A strategy, Schwartz said: "We look at companies and brands that are iconic brands that we can grow significantly for the long run."
RBI's most recent acquisition is the chicken chain Popeyes, which it bought in 2017. The company was created as part of the 2014 merger between Burger King and Tim Hortons.
Papa John's is reportedly scrambling to sell itself. In late November, The Wall Street Journal reported that private-equity firm Trian Fund Management had pulled out of the bidding for the pizza chain and that no bidders were interested in buying the entire company.
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