Restaurant Brands Hit With Challenge to $1 Billion Carrols Deal

Restaurant Brands International Inc. exploited its control over Carrols Restaurant Group Inc., a top owner of Burger King and Popeyes locations, to force the company into an unfair $1 billion buyout, according to an unsealed lawsuit.

A pension fund is suing RBI—a fast food conglomerate that holds the Burger King, Popeyes, and Tim Hortons brands—over claims it leveraged extensive veto rights to coerce Carrols into an underpriced transaction. RBI made clear it would block the franchise owner from expanding, giving investors a “Hobson’s choice” between letting the company wither or taking the only deal they could get, according to ...