February 02, 2006
It’s Good To Be King
Burger King Holdings Inc., the parent company of Burger King, announced on Wednesday that it plans to file documents with the SEC for an initial public offering in late February or early March. According to this article, the IPO is part of an attempt to keep up with rivals McDonald’s Corp and Wendy’s International. Both McDonald’s and Wendy’s are publicly traded companies. At least one restaurant industry consultant believes that McDonald’s recent success with the IPO of Chipotle Mexican Grill Inc. is a harbinger of “a very favorable market environment” for Burger King. Chipotle’s shares doubled from their offering price on their first day of trading. However, Burger King’s recent decline in sales may mean that it won’t “command that high of a price for its IPO,” according to one investor.
This article also comments on Burger King’s strained relationships with some of its franchisees. Burger King cut its ties with the National Franchisee Association in October 2005. Efforts at rapprochement since then have not been successful and the Association’s board recently resigned in protest.
On the bright(er) side, Burger King will advertise on Sunday’s Super Bowl for the first time in ten years.