Home » Black Swans » Burger King Fast Return Flip. Something Spooked 3 G Capital $BKW $WEN $YUM $MCD

Burger King Fast Return Flip. Something Spooked 3 G Capital $BKW $WEN $YUM $MCD

Current "blue crescent" logo (July 1...

Current “blue crescent” logo (July 1, 1999–present) (Photo credit: Wikipedia)

Give me a break. Burger King (NYSE:BKW) returns to the investment stage claiming that it has revamped its stores and menu. Also the last quarter sales were very encouraging so they thought they would rush back into the markets. Give me a break, a very big break.

Just recently the Brazilian group (3 G Capital)  takes them private because the hard restructuring is best done in private. Also the Brazilian group controlled a lot of cattle farming. So creating an integrated supply chain from birthing calves to flipping big whoppers to depositing money in the bank made sense.

Quite frankly do not see too many refurbished stores out there so the capex budget still needs to be big. Menu change well what is new. I am not lovin it because I cannot spot it.

This is a disguised short move. Private equity usually needs more time to fix the problems which were substantial. They seem to have panicked and are now off loading.

So what made them panic.

George Gutowski writes from a caveat emptor perspective.