Restaurant Brands International Inc.’s (QSR.TO) new chief executive is brushing aside any talk of impending mergers and acquisitions.
Jose Cil – named CEO of the Tim Hortons, Burger King and Popeyes parent company on Wednesday, effective immediately – told BNN Bloomberg his company is focused on growing its existing brands when asked if it had any interest in acquiring U.S.-based pizza chain Papa John’s (PZZA.O).
“We’ve always said that we have a balanced approach for capital allocation, and we look at M&A as opportunistic,” Cil said. “It’s a great business. It generates a lot of cash and allows us to de-lever and do other things when the opportunity arises.”
“But our focus at RBI is to grow our iconic brands globally,” he added. “We’re focused on running the brands that we have and running them well.”
Dealreporter.com re-ignited speculation on Wednesday that RBI could be a potential suitor for Papa John’s, which is currently mired in a legal fight with company founder John Schnatter.
Restaurant Brands’ shares surged 9.23 per cent, or $7.03, to $83.20 on Wednesday at 2 p.m. ET on the Toronto Stock Exchange, after the company announced its executive changes and a 1.9 per cent fourth-quarter global rise in same-store sales at Tim Hortons. Cil will assume the top post from Daniel Schwartz, who becomes executive chairman and co-chairman of Restaurant Brands’ board.
Cil said Tim Hortons’ success was based on a renewed focus on the brand’s traditional strengths and customer appeal.
“We had some product innovation, as well. A continued focus on coffee and then we also did quite a bit of work on brand communications,” he said.
“We re-launched [Tim Hortons’ ad campaign] ‘True Stories’ and that was quite successful, resonating well with the long-time guests and fans that love the Tim Hortons brand.”
- With files from Bloomberg News
Advertisement