Shares of Popeyes, Restaurant Brands International spike on acquisition rumor

Restaurant Brands International in bid to buy Popeyes: Report
Restaurant Brands International in bid to buy Popeyes: Report

Shares of Popeyes Louisiana Kitchen spiked more than 14 percent on Monday after Reuters reported that Restaurant Brands International had approached the fried chicken chain to express interest in an acquisition.

If a deal materializes, the move could help the Georgia-based Popeyes reach more global diners and boost Restaurant Brands' already strong roster of restaurants.

Popeyes intraday chart

Source: FactSet

Restaurant Brands, which owns Burger King and Tim Horton's, reported higher-than-expected earnings Monday morning as it topped same-store sales estimates and costs fell.The Oakville, Ontario-based company saw its stock rise up more than 5 percent after the Popeyes acquisition rumor.

Restaurant Brands ended the day about 4.6 percent higher, while Popeyes shares gained 7 percent on the day.

Both Restaurant Brands and Popeyes declined to comment to CNBC, saying they do not comment on market rumors.