Feb 24 – Carrols Restaurant Group Inc will spin off its Hispanic Brands business while keeping the weaker Burger King franchise, sending the fast food chain operator's shares up 10 percent.
The move, which the company expects to complete by the end of 2011, would make Hispanic Brands a new, publicly traded company. It also would prevent Burger King from holding back the better-performing Hispanic Brands.
"Interestingly, they are spinning off the higher growth segment," said Tim Ghriskey chief investment officer of Solaris Asset Management. "The Hispanic segment and the Burger King segment are really two vastly different concepts and that itself might be a good reason why they are splitting it up."
The new company will own and operate the Hispanic-themed Pollo Tropical and Taco Cabana businesses, which had combined revenue of $439.1 million in 2010. Carrols will own and operate more than 300 franchised Burger King restaurants.
To read the rest of the story, please go to: Reuters.
