Can You Invest in Popeyes Stock?

Popeyes is one of the most well-known fast-food restaurant chains across the country, and given its popularity, no wonder investors are looking to invest in Popeyes stock. Although you cannot invest directly in Popeyes stock, you can invest in its parent company Restaurant Brands International (NYSE: QSR).

Popeyes is an American global fast-food fried chicken restaurant business based in Miami, Florida that was started in 1972 in New Orleans, Louisiana. Popeyes Louisiana Kitchen, Inc. has been its full corporate name since 2008, formerly Popeyes Chicken & Biscuits and Popeyes Famous Fried Chicken & Biscuits. 

It is now a part of Restaurant Brands International. Many fast-food restaurants have devoted customers, but few can equal the devotion that Popeyes Louisiana Kitchen has created among its regular customers. 

Since its foundation in 1972, the chicken and Cajun-themed restaurant company has had a rapid expansion, and Popeyes stock has rewarded investors for many years. Particularly in the aftermath of the financial crisis. 

Popeyes was then acquired by Restaurant Brands International. As a consequence Popeyes stock was no longer available to be traded. After enjoying gains in excess of 2,000 percent between late 2008 and 2017. Thanks to Popeyes stock some investors ended up beating the market.

Popeyes is now a subsidiary of Restaurant Brands, which also owns and runs Burger King and Tim Hortons restaurants~and other well-known restaurant chains. Nonetheless, the narrative of Popeyes stock remains one of the best performing fast-food stocks of the past decades.  

History of Popeyes 

Popeyes was started in Arabi, Louisiana, a New Orleans suburb in St. Bernard Parish. It originally opened its doors as Chicken on the Run on June 12, 1972. Al Copeland, the founder, had the intention of competing with Kentucky Fried Chicken (KFC). However, his establishment failed a few months later. 

Four days later, Copeland reopened the business as Popeyes Mighty Good Chicken. It would soon change its name to Popeyes Famous Fried Chicken by 1975. Copeland began franchising his business in Louisiana in 1976. In 1984, the company moved to Canada, and in 1985, it launched its 500th location. 

Performance of Popeyes 

The fast-food chain experienced a period of tremendous development that began in the late 1970s and lasted into the next decade. The issue with the rapid expansion is that it resulted in a large amount of debt. The restaurant business is difficult to scale, and it requires considerable capital in order to effectively grow.

The corporation was overleveraged beyond what it could repay. Popeyes was forced to declare bankruptcy in 1991. Popeyes’ creditors initiated an effective approach and established a chain named America’s Favorite Chicken Business. This entity acted as the parent company and also owned Popeyes and Church’s. 

Popeyes as a subsidiary of the parent corporation became public, and the locations remained open and operational. In 2001, the newly created firm went public with its first public offering (IPO). With 9.4 million shares available, shares were sold at a starting price of $17 per share.

Popeyes performed extremely well following the IPO, with the stock more than doubling by the first quarter of 2002. However, this would be the best it could see. Within the next six years, the stock fell to less than $4 a share. 

Investors began to lose faith in recovery, and the recession at the time was weighing severely on the majority of investors. The chicken industry was in deep trouble as a result of this. Despite the fact that Popeyes Louisiana Kitchen had a loyal customer base, investor dissatisfaction contributed to a drop in the stock’s appeal. 

The rebound of Popeyes 

Following the death of founder Al Copeland in 2008, America’s Favorite Chicken rebranded as Popeyes Louisiana Kitchen, entering a new age of prosperity. The stock swiftly recovered soon after the financial crisis that still looms in our minds. Hitting $55 per share by late 2014. 

Investors focused on Popeyes’ development ambitions, which aimed to increase its global prominence at a time when many of its counterparts were looking to retrench and reorganize closer to home. Popeyes’ attraction was enhanced by a committed group of patrons. 

Products like chicken waffle tenders attracted new consumers to try the chicken chain, and the scale of defections from competitors like KFC became known. During this time the company continuously focused on guaranteeing customer satisfaction.

As then-CEO, Cheryl Bachelder stated in 2015, a focus on creating unique experiences for customers. While establishing a distinct brand and increasing sales and profitability was critical. And the firm continued to gain ground despite escalating consumer opinion toward the restaurant chain. 

Why there is no Popeyes stock 

Restaurant Brands International made an offer to purchase Popeyes Louisiana Kitchen on February 21, 2017. Popeyes stockholders received $79 per share in cash as part of the $1.8 billion purchase. 

When the deal was concluded, Popeyes stock was no longer available for trading in late March. Most Popeyes stock Investors were very pleased with the acquisition. As Popeyes stock had made remained relatively flat in the previous two years. 

Difficult restaurant business circumstances impacted Popeyes, and while its growth was greater than that of many of its peers, it didn’t compare as well to the significant growth rates earlier in its existence. Currently, Popeyes Louisiana Kitchen Inc is the company’s official name. 

Another method to invest in Popeyes stock is to become a franchisee and create your own Louisiana-style restaurant under the brand’s auspices. They continue to serve the same delectable Louisiana-style fast food menu items as before. 

The only thing that has changed about Popeyes is that it is no longer listed on the stock exchange. Therefore investors are not able to invest solely in Popeyes stock. At the very least, there are still a few possibilities for investors who are committed to investing in the restaurant in some way such as investing in Restaurant Brands International (NYSE: QSR) Stock. 

By investing in Restaurant Brands International you will get exposure to Popeyes business, even if you cannot directly invest in Popeyes stock.

Image source: Ubereats

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