As the results of the economic recession continue to unfold till this very day, Burger King has been the latest to announce their troubles. Burger King Holdings Inc. is looking to sell its shares in the world's second largest food chain company after continued losses in this past fiscal year. The company's shares closed at $16.45 on Tuesday versus its year high of $22.06. With 12,000 stores in 75 different countries, Burger King's problems are global problems as many people face loses with their stakes in the company.
Talks of the buyout have led to a drop in analysts estimates in its market value. So far Burger King's global sales have dropped 2.3% and in the US and Canada they have dropped 3.9% since last year. One of the prospective buyers is New York-based investment fund 3G Capita, but it is uncertain yet if anything will be final. If the world's second largest food chain company can't hold itself imagine what this means for the rest of the industry. With the restaurant industry highly dependent on people's standard of living and how much they like to treat themselves the increasing unemployment rate and fragile global economy that leads people to more conservative spending ways many businesses are at stake.
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Mohammed, good find. Do you think buyouts of other food chains like Burger King will become more common? Please include a link to your source article in the future.
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