Back on the Menu for Burger King After 2 Years: Publicly Traded Stock

By CANDICE CHOI

NEW YORK -- Burger King will return to the New York Stock Exchange after the market opens Wednesday.

The world's No. 2 hamburger chain last traded as a public company between 2006 and 2010. The company was then purchased and taken private by investment firm 3G Capital, which has been overhauling the chain's operations.

Burger King's listing on the exchange under the ticker "BKW" won't be through an initial public offering, however. 3G Capital announced an unusual deal in April to sell a minority stake to Justice Holdings, a London-based entity that was specifically set up to invest in another company. 3G Capital received $1.4 billion in exchange and retains a 71% stake in the company.

Under the deal, Justice was to suspend trading on the London Stock Exchange once the deal was complete and emerge as Burger King Worldwide Inc. on the New York Stock Exchange.

Miguel Piedra, a Burger King spokesman, said only 16% of shares will be available to retail investors when the stock begins trading again on the Big Board. Justice shares have been trading over the counter for $16 per share, he said.

Among Justice's founders are Bill Ackman, an activist investor and founder of Pershing Square Capital Management; Martin Franklin, founder and executive chairman of consumer products company Jarden Corp.; Alan Parker, former CEO of Whitbread, the United Kingdom's largest hotel and restaurant company; and investor Nicolas Berggruen.

Franklin and Parker will join Burger King's board as part of the deal. 3G Capital has said that no other changes will be made to the senior leadership and that the company will continue its focus on turning around the brand.

As the fast-food market becomes increasingly crowded at home, Burger King like other companies has been focusing on expansion overseas. This month, the Miami-based chain announced plans to open hundreds of new restaurants in Russia and 1,000 in China over the next several years. That's in addition to similar expansion plans for Brazil.

In the past year, 80% of new store openings were in Europe, the Middle East and Africa.

Back in the U.S., Burger King in April launched its biggest menu expansion ever. The chain is abandoning its strategy of courting young men and going after a broader customer base of moms and families with items such as fruit smoothies and specialty salads.

Burger King has more than 12,500 restaurants worldwide, compared with 33,000 for McDonald's Corp.


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15 Comments

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michael

The Delafield BK must have Diet Coke contest. I keep getting diet instead of regular. Prices are higher since the takeover. Used to love them, not any more.

June 24 2012 at 4:08 PM Report abuse rate up rate down Reply
ilm9p

The King had best raise his hiring standards. I stopped going to this restaurant many moons ago for the simple fact of being revolted by the herd of disinterested filth behind the counter.

June 21 2012 at 10:06 AM Report abuse rate up rate down Reply
alfredschrader

The first successful Burger King was on 7th Avenue in Miami. Most of the fast food industry originated
from a small stretch of road there from 119th street to 125th street. How do I know ? I grew up on 12th Avenue there and saw it all develop. It's been 50 years. Most of it was unbelievable. There were many other "firsts" that never became chains that were more amazing than Sanders smelly chicken place and BK including Latas, "K"s, etc. I loved food as a boy, so I studied all of them. The people who currently own BK have no idea, they weren't there . The knowledge I have is worth many billions.....Al-

June 21 2012 at 5:34 AM Report abuse rate up rate down Reply
Steve

Judging from the way their food and service have gone in this area the past few years, I would not be rushing out to buy any shares of BK anytime soon. Their speed of service and food quality (i.e. serving temperature) sucks and are way worse than they used to be. I hardly ever go there anymore, there are lots of better choices out there. Looks like they have a LOT more work to do.

June 21 2012 at 2:27 AM Report abuse rate up rate down Reply
icastfuturestars

Why does everry Burger King 'sandwhich" automatically come with mayonaisse. You don't know how many times I have said "No Mayo": to have to drive around handing them back a Burger, or anything else. They have some deal for life with a mayo company lol?

June 21 2012 at 1:27 AM Report abuse +1 rate up rate down Reply
Rob

Burger King IS making money...from ME.....twice within the span of three weeks, two different Burger Kings, "double charged" me for my meal......almost 30 bucks for two different meals......they are definitely rolling in the dough.....Don't go there anymore without cash.....tired of the b.s

June 20 2012 at 11:38 PM Report abuse +2 rate up rate down Reply
trosebud9

Like any fast food place it is only as good as the workers and management. Our BK runs out of staple items during breakfast and lunch all the time. How does Burger King NOT have enough Hamburgers cooked???

June 20 2012 at 11:36 PM Report abuse +2 rate up rate down Reply
bouncer827

i think they should have stayed private.......private as you don't know where they are located

June 20 2012 at 10:18 PM Report abuse +2 rate up rate down Reply
Taz

Burger King is getting rid of the microwaves so you wont get a nuked burger anymore...

June 20 2012 at 10:15 PM Report abuse +2 rate up rate down Reply
raidrmik67

Burger King is like the neglected red headed step child (sorry Wendy)! When prepared fresh the Whopper beats the Big Mac, I think their fries are better as well. The problem is they pre cook their burgers then microwave them when you order, I've ordered them "fresh from the broiler" only to watch the girl microwave my burger then the clerk hands it to me and somehow this is their definition of "fresh" when I questioned a manager she said "well it had only been held for a few minutes maybe we have a different definition of fresh" I told her my definition of fresh cooked was actually removing the patty from the broiler and putting it on my bun..."oh, well if you want it that way just tell us and we'll make you one like that "..........Good freaking grief, if I have to go through all that I won't bother!

June 20 2012 at 9:55 PM Report abuse +3 rate up rate down Reply
1 reply to raidrmik67's comment
raidrmik67

Oh, BTW, don't bother calling the 800 number on the receipt as you'll sit on hold until they send you to voice mail but will never call you back.

June 20 2012 at 9:57 PM Report abuse +2 rate up rate down Reply