It's a super sized King Deal. Burger King, one of the largest companies headquartered in Miami-Dade and second largest fast food chain in America, has agreed to sell itself to 3G Capital Management Inc., a New York-based private investment firm backed by several Brazilian businessmen. Burger King decided to put itself up for sale after struggling with the economy and competition from McDonald's.
Burger King has struggled in recent years with both the recession and McDonald's Corp., its biggest rival. Franchisees and analysts blame the chain's problems on scant menu development, flawed pricing and an overworked strategy of focusing on so-called super fans, people aged 18 to 34 years old who account for half of all visits to Burger King outlets but have been disproportionately hurt by the economic slump.
There's few details, but it seems Burger King's chairman and CEO John Chidsey will remain as co-chairman. There's no indication that BK's headquarters would relocate.
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Though we have to wonder idly if the new owners are big fans of locally-based ad agency Crispin Porter + Bogusky's infamous ads for the King. They do tend to target that "super fan" demographic.
One of 3G's biggest backers is Jorge Paulo Lemann, the third richest man in Brazil.
"The deal marks the continued ascendancy of Brazil as a big corporate player," writes The New York Times.
As a side note, 3G also employs Marc Mezvinsky, the new husband of Chelsea Clinton. We wonder if that means the former first family will have the change fast food alliances? We all know Bill was a big McD's fan.