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Shanghai, June 27 (Reuters): Burger King Corp, the number-two fast-food brand to McDonalds Corp, may float shares as early as next year as it returns to growth after years of restructuring, its top executive said on Monday.
The chain should also post its strongest gain in same-store sales ? a widely watched barometer in the fast-food sector ? since 1984 for its fiscal year to June 30, said chairman and chief executive officer Greg Brenneman.
“An IPO is the most likely exit” for the companys current owners, said Brenneman, who was attending the opening of his first Chinese outlet, in the countrys commercial heart Shanghai.
“2006 would be the earliest, but by no means would I say thats a definitive date,” he said. “The store count is taking off and is growing again for the first time in a long time.”
As part of an expansion drive, the US hamburger giant marked its late entry into a Chinese market dominated by McDonalds and Yum Brands Incs KFC, which have been slugging it out in the country for over a decade.
Burger King, which operates more than 11,000 restaurants in 65 countries ? about a third of McDonalds total ? had suffered in recent years from a lack of clear identity in consumers minds and shaky franchisee relations.
The chain is now owned by private equity investors Texas Pacific Group, Goldman Sachs Capital Partners and Bain Capital, which bought the brand for about $1.5 billion from British drinks giant Diageo Plc in 2002.
McDonalds has a market capitalisation of almost $36 billion.
Prior to the buyout, the company suffered from a lack of direction that included an absence of major new initiatives ? both at home and abroad ? in the fast-changing and highly competitive industry. After several years restructuring under new ownership, the chain, with $12 billion in system sales for its