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Restaurant Brands New Zealand (ASX:RBD) receives approval for KFC franchise purchase

Consumer Discretionary
ASX:RBD      MCAP $375.5M
31 August 2020 16:45 (AEST)

Restaurant Brands New Zealand (RBD) has received the green tick of approval from KFC and Taco Bell for the purchase of 69 stores.

Just before Christmas, RBD announced it was going to purchase 70 stores in Southern California from the KFC franchisee for US$73 million (approx A$99 million).

However, the purchase now includes 58 KFC stores and 11 multi-branded KFC and Taco Bell stores, with a head office facility.

The agreement was conditional on consent from KFC and Taco Bell to proceed with the purchase.

RBD says it is expecting settlement to occur by September 2.

“We are delighted to take the next step in Restaurant Brands’ growth strategy,” Chairman José Parés said in December.

“This acquisition provides us with a solid beachhead in the U.S. with significant opportunities for further development,” he added.

RBD last traded for $8.80 on August 5, 2019.

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