Home » Bear Case Scenario » Burger King Worldwide Bear Case Scenario $BKW, $THI, $WEN, $SBUX, $MCD

Burger King Worldwide Bear Case Scenario $BKW, $THI, $WEN, $SBUX, $MCD

Burger King will be releasing earnings shortly. Ponder this Bear Case Scenario:

Fast food is an ultra competitive industry. Price competition breaks out at the drop of a hat. Labour and commodity prices are volatile. The minimum wage movement in the US is not helping labour productivity.

Burger King was just recently taken private and reorganized by private equity. Within a very short time it was re IPO’ed and foisted on the market again. not sure what was really changed over. Menu changes and store fixtures can be fixed without going private.

Miami connection makes it plugged in to Latin America. The private equity group was strong on Brazilian and cattle/beef connections. Now they decided to sell instead of having a captive outlet for beef and food commodity.

George Gutowski writes from a caveat emptor perspective.

Advertisements