BK Looks to IPO, Continued Turnaround
By George Anderson
Burger King has made slow and steady improvement over the past couple of years under Greg Brenneman, so what does the future hold for the fast food chain beyond its planned initial public offering?
During Mr. Brenneman’s tenure leading the fast food chain, Burger King has gone from losses and failing franchisees to a profit and a sense of optimism. The chain has rolled out successful new products such as its TenderCrisp chicken sandwich, chicken fries and Angus burger, and attracted attention with its plastic head Burger King character commercials.
The company, according to Thomson Financial, is looking to raise up to $400 million with its initial stock offering. What is not known is how many shares the company will put up for sale or at what price.
One of the points of concern for Burger King has been the amount of debt it has taken on.
Alan Vituli, CEO of Carrols Corp., Burger King’s largest franchisee with 350 restaurants, told The Associated Press he also was concerned about the debt but the company was performing well enough to handle it and continue investing in the business.
Moderator’s Comment: Has Burger King made enough progress to conclude it has turned its business around? What will the company’s IPO mean for Burger
King and its franchisees going forward?
Kathleen Smith, a principal and IPO analyst for Renaissance Capital, told The Associated Press she wasn’t ready to predict how well Burger King’s
stock sale would go but did say, “It’s a good time for a fast-food chain or restaurant chain to go public.” –
George Anderson – Moderator