What was the total cash paid by Burger King in connection with the Carrols Acquisition?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
mpact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance.
Note 3. Carrols Acquisition
Prior to May 16, 2024, we owned a 15% equity interest in Carrols Restaurant Group, Inc. ("Carrols"), which was accounted for as an equity method investment. On May 16, 2024, we acquired the remaining 85% of Carrols issued and outstanding shares that were not already held by us or our af
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the total cash paid in connection with the Carrols Acquisition was $543 million. In addition to the cash payment, Burger King assumed approximately $431 million of Carrols' outstanding debt, which was fully extinguished as of June 30, 2024.
The document further states that the cash purchase price and the extinguishment of debt assumed during the Carrols Acquisition were financed through a combination of Burger King's existing cash reserves and $750 million in incremental borrowings under their senior secured term loan facility.
This information is relevant for prospective Burger King franchisees as it provides insight into the financial transactions and strategies of the parent company. Understanding the scale and financing of acquisitions like the Carrols Acquisition can help franchisees assess the financial stability and growth strategy of Burger King.