Restaurant giant in $1.8 billion acquisition
Popeyes Louisiana Kitchen is about to get a new owner.
Restaurant Brands International Inc., owner of Burger King and Tim Hortons, announced it would acquire Popeyes Louisiana Kitchen for $1.8 billion in cash.
"Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world,” said Daniel Schwartz, CEO, Restaurant Brand International, which operates more than 20,000 locations under the Burger King and Tim Hortons banners. "With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong U.S. and international prospects for growth. We look forward to taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the U.S. and around the world.”
Following the closing of the transaction, Popeyes will continue to be managed independently in the United States.
Based in Atlanta and Oakville, Ontario Restaurant Brands was formed in 2014, when 3G Capital-backed Burger King acquired Canada’s Tim Hortons for $11 billion.
Popeyes, which was founded in New Orleans area in 1972, operates more than 2,600 restaurants, of which 1,600 are in the United States.
Cheryl Bachelder, CEO of Popeyes, said, " As Popeyes enters its 45th year, its success reflects the amazing brand entrusted to us by founder Al Copeland, Sr. and the unique high trust partnership that we enjoy with our franchise owners. RBI has observed our success and seen the opportunity for exceptional future unit growth in the U.S. and around the world. The result is a transaction that delivers immediate and certain value to the Popeyes shareholders."
Just heard this morning ARBY'S parent company is also bidding....Now the action begins! :)
Home Deport surges amid higher-than-expected sales, profit
The Home Depot is closing in on the $100 billion mark in annual sales.
The Atlanta-based retailer posted a 6.4% increase in same-store sales in the United States, and 5.8% overall, for the quarter ended Jan. 29.
CEO Craig Menear credited merchandising mix and digital prowess for the chain’s better-than-expected fourth quarter performance, which saw sales increase to $22.2 billion in the fourth quarter, up 5.8% from 21.0 billion in the same quarter last year.
As the Home Depot closes in on the $100 billion mark for annual sales, the Atlanta-based retailer rang up a fourth quarter comparable-store sales stat of 6.3% in the United States, and 5.8% overall.
CEO Craig Menear credited merchandising mix and digital prowess for the performance, which saw sales increase to $22.2 billion in the fourth quarter, up 5.8% from 21.0 billion in the same quarter last year.
For the full year, sales increased to $94.6 billion, up 6.9% from $88.5 billion last year.
“Our focus on providing localized and innovative product selection, improving the interconnected customer experience, and driving productivity resulted in record sales and net earnings for 2016,” said Craig Menear, chairman, CEO and president. “Our associates responded to a healthy housing market and strong customer demand.”
The company released guidance for its 2017 fiscal performance, highlighted by expectations fo 4.6% sales growth — for nets ales and comp-store sales. The retailer expects to add six new stores next year — up from its current figure of 2,278.
Home Depot also expects capital spending to reach about $2.0 billion in 2017.
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Another department store retailer misses
Slowing mall traffic continued to slow Dillard’s sales in the fourth quarter.
Net income for the quarter ended January 28, 2017, was $56.9 million compared to net income of $84.0 million in the year-ago period. Included in the amount is an after-tax asset impairment of $4.2 million on a cost method investment.
Net sales for the period were $1.94 billion, down from $2.07 billion last year. This missed analyst estimates of $1.999 billion.
Same-store sales also decreased 6% for the period. Although all sales categories declined during the quarter, better performing categories relative to the total trend were ladies' apparel and men's apparel and accessories. Weakest performing categories were home and furniture and shoes. Sales were strongest in the Eastern region followed by the Western and Central regions, respectively.
For fiscal 2016, the department store chain reported net income of $169.2 million down from $269.4 million for the prior year 52-week period.
Net sales for the 52 weeks were $6.257 billion compared to $6.596 billion last year. Same-store sales also decreased 5
“Our operating results reflect another quarter of mall traffic declines from continued retail industry challenges,” said Dillard’s CEO, William T. Dillard, II. “In response, we are ramping up our efforts to bring more distinctive brand and service experiences to Dillard’s, both in-store and online. Our strong balance sheet provides us support in these challenging times, and during the year we returned $256 million to shareholders.”
As of Jan. 28, the chain operated 268 Dillard’s locations, 25 clearance centers spanning 29 states and an e-commerce operation. Total square footage at Jan. 28, 2017 was 49.2 million.
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