News

Multi-million dollar deal could mean Taco Bell is headed for New Zealand

October 26, 2016

A report on New Zealand-based, Stuff.co.nz, says that a huge fast food company, Restaurant Brands, has signed a $105 million deal with Pacific Island Restaurant (PIR) to take control of Taco Bell and Pizza Hut in Hawaii. Restaurant Brands already operates Pizza Huts, KFCs, Starbucks and Carls Jr in the Kiwi nation, but this deal which will clear later this year, came with indications that Taco Bell could now be ringing out its spicy offerings in New Zealand. Restaurant Brands Chief Financial Officer Grant Ellis told the website that the short answer to whether Taco Bell is headed for New Zealand is, "No, not right at the moment ... but the opportunity is definitely there."

In Hawaii, PIR is the largest fast food restaurant operator with 82 Taco Bell and Pizza Hut stores. Restaurant Brands’ Ellis added that "There are also further expansion opportunities in that market."

Restaurant Brands Chief Executive Russel Creedy said the acquisition was part of the company's overall global growth strategy.

"It also provides an entry point into the Hawaiian market, which has a similar total population to Auckland and is currently benefiting from positive economic growth. We also see a number of other potential bolt-on opportunities in the market that we may look to pursue over time where they make strategic and financial sense."

Restaurant Brands just reported a 22 percent sales increase in the quarter ending Sept. 12. The company wants to fund the acquisition partly by raising $94 million from shareholders.