Population Statistic: Read. React. Repeat.
Wednesday, February 01, 2021

Ever since Burger King was spun off from Diageo in 2002, the goal was to take the newly-independent company public. A few management shuffles and franchisee squabbles later, that plan is set, with the initial public offering set for several weeks from now.

The company’s eroding market share would seem to make an IPO an iffy proposition. But if anything, going public now might be the best way to counter that trend:

Restaurant industry consultant Allan Hickok said Burger King’s timing was right, considering the success last week of McDonald’s spin-off of Chipotle Mexican Grill Inc. Its shares doubled on their first day of trading.

The restaurant business is a bear, and very much subject to consumer whims. And when so much of the operation is reliant on third-party franchisor agreements, it’s really a prickly pear. On the other hand, BK is a long-established company, and there’s enough adventure capital investing going on on the Street that plenty will snap up shares on little more than brand value and blind faith.

Since Miami-headquartered BK is a Florida company, this means the $9.276 billion-dollar outfit will shift from this list to this one. (I’m not sure if that will be this year or next; if I were still putting them together, I’d guess the deadlines would be too tight to crown BK a Florida Public Company during 2006.)

- Costa Tsiokos, Wed 02/01/2021 04:37:21 PM
Category: Florida Livin', Business | Permalink |

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