News

Popeyes’ buys its recipes from supply company for $43M

June 17, 2014

Popeyes Louisiana Kitchen has purchased the recipes it uses for many of its core menu items from Diversified Foods and Seasonings LLC. According to a news release, the purchase of the recipes was for $43 million, and was funded by drawing down on the company’s revolving credit facility, bringing total outstanding debt to approximately $110 million subsequent to the transaction. 

Total remaining availability under the company’s revolving line of credit is approximately $140 million.

DFS is the supply company owned by the estate of Al Copeland, Popeyes’ founder. Popeyes also extended its exclusive supply agreement with DFS that covers the manufacturing and supply of proprietary spices and other products provided by DFS.

 “With the cooperation of the Copeland family, this transaction now brings important intellectual property – Popeyes’ core recipes – under brand ownership for the first time in our company’s history,” CEO Cheryl Bachelder said in the release.

The purchase eliminates the $3.1 million annual royalty that was previously scheduled to be paid by the company until 2029.

“Popeyes now owns its recipes in perpetuity for use worldwide and has clarity of supply and pricing terms through the balance of the supply agreement. We thank the Copeland family for reuniting these treasured recipes with the brand Al Copeland, Sr. created,” Bachelder added.