Irene Jiang / Business Insider
- Popeyes’ parent company, Restaurant Brands International, sold $750 million of high-yield debt on Friday, Bloomberg reported.
- Just like its popular chicken sandwiches, which sold out in two weeks in August, the debt offering was quickly snapped up by investors, according to the report.
- The speedy sale of the junk bonds shows how desperate investors are for yield in the current market environment.
- Read more on Business Insider.
Popeyes sparked a fast-food frenzy when it completely sold out of its popular chicken sandwich in August after only two weeks of sales although the supply was intended to last until October.
Now, its parent company is bringing the same success to the debt market.
Restaurant Brands International, which owns Popeyes as well as Burger King and Tim Hortons, sold $750 million of debt on Friday, Bloomberg’s Sally Blakewell and Gowri Gurumurthy reported, citing sources with knowledge of the matter.
The debt is also one of the least expensive ever issued for a junk-rated bond, the riskiest classification of debt that companies or governments can offer to investors. The notes sold have a yield of 3.875%, which is one of the lowest that the US high-yield market has seen since 2014, according to the report.
The quick sellout of the debt highlights how much investors are scouring the market for yield, Bloomberg reported. That’s led many to invest in the high-yield space, even though it has a reputation for being riskier than other bonds.