While positive on the deal, which is expected to be earnings accretive, analysts have raised questions about how the Australian outlets will deliver in relation to New Zealand operations.
QSR Pty Ltd has the largest KFC franchise, by store numbers, in New South Wales, with annual revenue of more than $A100million with earnings before interest, tax, depreciation and amortisation (Ebitda) of more than $A15million.
RBD will take on $A62million debt through new banking facilities, with the balance funded by issuing 5 million new shares at $4.16 to the current owner, who is to join the board.
RBD operates KFC, Pizza Hut, Starbucks and Carl's Jr franchises in New Zealand.
RBD shares were up 10% on the news yesterday, at $4.61 - a record since its June 1997 listing.
Forsyth Barr broker Suzanne Kinnaird said RBD was a strong operator, delivering above-market earnings growth, underpinned by outperformance with its anchor KFC chain.
"Strategically it is a good acquisition and we expect RBD to be able to add value through its strong operational knowledge. We also see potential for some cost synergies,'' she said.
She noted RBD has an unsuccessful track record in Australia with Pizza Hut, but it was acquiring an already profitable business in a brand it knows well.
Craigs Investment Partners broker Peter McIntyre said while "on the surface'' it was a good strategic move for RBD, it had paid "full price'' for the 42 outlets, or five times its Ebitda.
"Business growth opportunities in New Zealand are limited and the Australian acquisition should add 20% to revenue. But it does add risk to RBD,'' Mr McIntyre cautioned.
There had been a string of New Zealand companies which had "come unstuck'' in making forays into Australia, and currency swings increased the risk, he said.
While the acquisition left RBD with $NZ82 million debt, post-purchase its market capitalisation would be more than $500million, meaning the new debt loading was not significant.
RBD said the current owner had been invited to join the RBD board, bringing necessary Australian market knowledge.
RBD said yesterday that after allowing for corporate costs, it was expected to generate annual turnover of more than $NZ500million and ebitda of $NZ70million; assuming an exchange rate of A93c.
Mrs Kinnaird said the transaction was accretive, with Ebitda from former QSR of $A15million, earnings before interest and tax at $A7.5million and after-tax profit around $A3.1million.
She estimated for full year 2017, after-tax profit of former QSR outlets would be $NZ3.4million, plus RBD's New Zealand operations of $NZ28.2million.
However, she raised multiple questions about the acquisition, in that ebitda margins in New Zealand were better than Australia, what cost synergies there may be, whether New Zealand redevelopment could be applied to Australia, and expansion opportunities in New South Wales.
RBD chairman Ted van Arkel said the transaction represented "a strategic growth opportunity''.
"The acquisition is an opportunity for Restaurant Brands to gain a scale position in the New South Wales quick service restaurant market, leveraging our strong relationship with Yum! Restaurants International and successful track record owning and operating KFC stores,'' he said.
QSR's KFC stores are located in urban Sydney and New South Wales.
RBD chief executive Russel Creedy said it was an opportunity to expand RBD's geographical footprint of KFC stores "with considerable further expansion opportunities''.
After the transaction, which is expected to be settled in April, RBD is expected to have total outstanding debt of about $NZ82million.
