Brazil Fast Food acquires Pizza Hut franchise in Brazil
August 13, 2008
by Eric Schroeder
RIO DE JANEIRO, BRAZIL — Brazil Fast Food Corp., which operates the second-largest fast-food restaurant chain in Brazil under the Bob’s and KFC brands, has acquired 60% of Internacional Restaurantes do Brasil (I.R.B.), Pizza Hut’s largest franchise in Brazil.
I.R.B. owns 14 Pizza Hut restaurants in São Paulo, Brazil, and four cafe stores with the brand "In Boca al Lupo," also acquired by Brazil Fast Food.
I.R.B. had annual sales of approximately $30.1 million and income of $700,000 in 2007. The transaction is expected to increase Brazil Fast Food consolidated revenue by 20% in 2008 and 40% to 50% in 2009.
As part of the transaction, Brasil Fast Food will retain a 60% stake with the remaining 40% to be owned by POGO Participações, a company controlled by Jorge Aguirre, I.R.B.’s chief executive officer.
"This transaction is an important milestone in the execution of our strategy to become a leading multi-brand fast-food chain in Brazil," said Ricardo Bomeny, c.e.o. of Brazil Fast Food. "In addition to being a good fit with our existing brands, it positions the company well to take advantage of the casual dining opportunity targeting more affluent segments of the population."