A privately owned sandwich brand that has built a strong base of restaurant units and growth is going public in an acquisition by a well-known restaurant holding company.
The deal values Firehouse Subs at $1 billion.
Restaurant Brands International will now own Tim Hortons, Burger King, Popeyes and Firehouse Subs, all well-known brands covering different portions of the quick-service restaurant industry.
About Firehouse Subs: Brothers and former firefighters Chris Sorensen and Robin Sorensen launched Firehouse Subs in 1994. The brand has grown its unit count over the years, while keeping true to donating a portion of proceeds to the Firehouse Subs Public Safety Foundation.
Firehouse Subs is well-known in the sandwich category and consistently ranks among the market leaders for food quality and value for your money, according to the company.
The company is led by CEO Don Fox, who spent 23 years with Burger King and has more than 40 years of experience in the quick-service restaurant and fast-casual industries.
Growth Ahead: Restaurant Brand International said adding a company in the sandwich category is complementary. The company noted it can help the brand scale by adding additional units in the U.S. and internationally.
“We see tremendous potential to accelerate U.S. and international growth at Firehouse Subs with RBI’s development expertise, global franchisee network and digital capabilities,” Restaurant Brands International CEO Jose Cil said.
Firehouse Subs increased its unit count from 400 to 1,200 in the last 11 years. The majority (97%) of its locations are franchised, following a model that fits well with the Restaurant Brands International portfolio.
There are 21,230 Subways in the U.S. and 2,940 in Canada, according to the presentation. Ten countries listed in the presentation have over 300 Subways each, showing a glimpse of the potential international growth for Firehouse Subs.
Firehouse Rewards has 3.5 million subscribers and is part of the company’s digital growth, representing around 10% of company transactions.
The company has locations in the U.S. (46 states), Canada (47 locations) and Puerto Rico (14 locations).
Adjusted EBITDA for Firehouse Subs is expected to be $50 million for fiscal 2021. The company is expected to have $1.1 billion in systemwide sales for fiscal 2021.
Price Action: QSR shares are up 2.12% to $58.41 on Monday afternoon at publication.
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