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ASSOCIATED PRESS
Restaurant Brands NZ is purchasing the operator of isle Taco Bell and Pizza Hut restaurants.
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The operator of all the Taco Bell and Pizza Hut restaurants in Hawaii is being acquired by a New Zealand company for
$105 million.
Restaurant Brands NZ said Tuesday it is buying Pacific Island Restaurants Inc. through a combination of
40 percent debt and 60 percent equity. Pacific Island Restaurants operates 82 stores in the state as well as all the Taco Bell and Pizza Hut restaurants on Guam and Saipan.
Restaurant Brands owns close to 300 Pizza Hut, KFC and Starbucks stores in New Zealand.
Restaurant Brands said in its midyear fiscal 2017 earnings release that Pacific Island Restaurants is a well-run and profitable company that represents “an excellent opportunity … to further diversify its earnings (while) providing access to the profitable Taco Bell brand.”
Restaurant Brands CEO Russel Creedy said the acquisition of Pacific Island Restaurants provides the next stage to the New Zealand company’s growth.
“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,” Creedy said in a statement.
Restaurant Brands said completion of the Pacific Island Restaurants acquisition is expected by late December and is conditional on receipt of approval by Yum! Brands Inc., the franchiser for Taco Bell and Pizza Hut stores and for Restaurant Brands’ existing KFC and Pizza Hut operations in New Zealand and Australia.
Pacific Island Restaurants, founded in 1971, has been consistently profitable in recent years and has a stable, experienced management team with an average tenure of 25 years, according to Restaurant Brands.
“Taco Bell and Pizza Hut are both well-established franchises and are leaders in the Mexican and pizza quick service food categories in Hawaii,” Restaurant Brands Chairman Ted van Arkel said in a statement. “In particular, Restaurant Brands is excited to gain exposure to Taco Bell, a brand with attractive margins and a product offering that has worldwide appeal. We have nearly 20 years’ experience successfully operating the Pizza Hut brand in New Zealand and will look to leverage this experience to drive the Hawaiian franchise’s continued performance.”
