Burger King Holdings Inc., the second largest hamburger-chain, is facing a possible sale. The last time this incorporation experienced a change of hands was in 2002, when Bain Capital LLC and Goldman Sachs Capital Partners bought the company for about $1.5 billion. Today, the investment fund “3G Capital” is showing strong interest in purchasing this 2 billion dollar worth business. At the beginning of the year, around April, Burger King’s shares reached a high of $22.06. It’s actual market capitalization has a value of around $2.26 billion, and is currently in control of over 12,000 restaurants spread all around the world in more than 75 countries. However, the competition (McDonald’s) is presenting a much greater appearance.
Burger King Holdings Inc. holds a fair amount of advantages such as its value and globalization. However, earlier this month, Burger King shares decreased by 1.91% as it closed at $16.45 on the New York Stock Exchange. On the other side, McDonald’s sales increased by 4.8% this summer. Burger King’s current owners are making a good decision by taking interest in selling the incorporation. By doing so, there exist a possible reciprocal benefit. Burger King’s current state has no promising future, and at those times of competition crisis, change is always the best option.
Source: http://online.wsj.com/article/SB10001424052748703467004575464521824398544.html
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