Boston.com reports that Burger King Holdings Inc. has confirmed a deal with 3G Capital. An investment firm with strong ties to Latin America, 3G Capital is paying about $4 billion, which, according to the Chicago Tribune, includes debts owed by Burger King Holdings Inc. This is a significant change for the nation’s second largest fast-food chain. Chairman and CEO John Chidsey said this should increase faster expansion overseas. 3G Capital is expected to enhance Burger King’s future by using the experience and contacts they have across the world, where more than a third of Burger King locations exist.
Burger King, a publicly traded company since 2006, says the shares were dealt at $24 each for this exchange.
Market mergers and acquisitions market have been busy this year. Apollo Management Group agreed to buy Carl’s Jr and Hardee’s parent CKE Restaurants in February. Nelson Peltz, whose funds own about twenty-five percent of Wendy’s/Arby’s Group, Inc., said last June that he has been approached by an outside investor regarding the chains. Peltz’s Triarc Cos purchased Wendy’s and merged it with Arby’s less than three years ago.
Meanwhile, McDonald’s Corp. is number 1 in a big way. Rather than being rattled by all the changes, it just keeps doing what it has always done best: serving quality food at a competitive price in areas that utilize its services. This has resulted in profits for the last 29 consecutive quarters. Burger King, on the other hand, has reported declining sales since spring 2009.
Keep your eyes on the golden arches: May they forever shine!
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