Fast-Food Firm Sets Its Cap At Takeover

Stuff:

Restaurant Brands, the operator of the KFC, Starbucks and Pizza Hut chains, appears to be dressing itself up for a takeover, with Australian private equity firms seen as the most likely buyers.

Restaurant Brands said yesterday that a number of parties had approached its board “expressing interest in potentially participating in the company’s future”.

In an apparent facilitating move, Restaurant Brands also said it was accelerating its sale of, and exit from, 50 loss-making Pizza Hut stores in the Australian state of Victoria.

Restaurant Brands’ shares rose 12 cents, or 13 per cent, to $1.04 yesterday lifting the firm’s market value to $101 million.

Chief executive Vicki Salmon said Restaurant Brands had provided the interested parties with some information.

“It’s very early interest and we’ll keep the market updated.”

It was fantastic and a huge relief to exit Australia, allowing the company to focus on its New Zealand operations. The Victorian business lost $5.5 million before tax in the six months to September 11.

Four parties are thought to be kicking Restaurant Brands’ tyres.