Burger King Parent Plots Expansion of New Brand Firehouse Subs

(Bloomberg) -- Restaurant Brands International Inc. is planning to open more locations of Firehouse Subs, the chain it’s buying in a $1 billion all-cash deal.

The parent company of Burger King and Popeyes will expand the sandwich brand both in the U.S. and abroad, Chief Executive Officer Jose Cil said in an interview following Monday’s acquisition announcement. Founded in 1994 in Jacksonville, Florida, Firehouse has about 1,200 locations, mostly in the U.S.

“We believe in the potential growth opportunity in domestic markets and internationally,” Cil said. “There’s a ton of room for growth for Firehouse Subs,” which has tripled its store count since 2010, he said. Cil declined to give a specific estimate for unit growth.

Restaurant Brands in recent quarters has seen slower growth of Burger King amid the coronavirus pandemic, along with on-and-off lockdowns that have dogged results at Tim Hortons. The Toronto-based company’s U.S. shares were trading about 1.9% higher at $58.30 on Monday afternoon, after declining 6.4% this year through Nov. 12.

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