Burger King to list shares on NYSE
NEW YORK—Burger King is prettying itself up for a public outing.
The world's No. 2 hamburger chain, which is in the midst of overhauling its menu and stores, says it expects to be relisted on the New York Stock Exchange within the next three months.
In a deal announced late Tuesday, the New York-based investment firm 3G Capital said it is selling a 29 percent stake in Burger King for $1.4 billion in cash to Justice Holdings LTD, a U.K.-based entity that was specifically set up by investors to buy a company.
Justice's shares will suspend trading on the London Stock Exchange once the deal is complete. The company will then emerge as Burger King Worldwide Inc. and its shares will be traded on the NYSE.
Burger King previously traded under "BKC" but the new ticker has not yet been determined.
The announcement comes just a day after Burger King launched a star-studded TV ad campaign to tout the biggest revamping since the chain opened its doors in 1954.
The overhaul started last year shortly after 3G Capital took the reins of the Miami-based fast food chain and assessed the ailing business from top to bottom. Executives decided to abandon Burger King's outdated strategy of courting young men with calorie-packed monstrosities and instead play to a much broader audience.
Among the items launched Monday were frappes, fruit smoothies, specialty salads and snack wraps. The additions mimic many of the popular rollouts in recent years by
Daniel Schwartz, Burger King's chief financial officer, said the company's growth strategy will not change and that Burger King will continue to focus on strengthening its brand at home and abroad. He said there will be no changes to the senior leadership.
"Being publicly listed lets the Burger King brand capitalize on the positive momentum of the past year," Schwartz said.
But the deal is just the latest change for Burger King, which has undergone a series of ownership changes over the years. In 1967, The Pillsbury Co. bought it for $18 million; then Grand Metropolitan PLC bought The Pillsbury Co. for $5.79 billion in 1988.
About a decade later, Grand Metropolitan merged with Guinness to create a new company called
Two years later, an equity group comprised of Texas Pacific Group, Bain Capital and
Analyst Darren Tristano has said that part of McDonald's success over the years has stemmed from the company's steady leadership over the years, while Burger King has likely suffered from a lack of steady management.