Burger King shares continue to climb

[June 22, 2012]  NEW YORK (AP) -- Shares of Burger King Worldwide Inc. continued to rise Thursday, the second day of trading since the world's second-largest hamburger chain's return to the New York Stock Exchange.

THE SPARK: Rather than an initial public offering, Burger King returned to the public market through a complex deal that it announced in April. The owner of the Miami-based chain, 3G Capital, sold a minority stake to Justice Holdings Ltd., a London-based entity that was specifically set up to invest in another company.

Justice then suspended trading on the London Stock Exchange then emerged as Burger King on the Big Board.

Only 16 percent of Burger King shares were available for sale to investors; the founders of Justice Holdings will hold onto their 13 percent of shares for at least one year as part of the deal. 3G Capital will hold onto its 71 percent stake for at least six months.

THE ANALYSIS: 3G Capital has been overhauling Burger King's operations since acquiring the chain in late 2010. In the U.S., the company in April launched its biggest menu expansion ever in hopes of attracting a broader customer base. The chain is also looking to aggressively expand its footprint overseas, given the saturated market at home. This month, Burger King announced partnership deals to open several hundred restaurants in Russia and 1,000 in China over the next several years.

SHARE ACTION: Burger King stock was up $1.17, or almost 8 percent, at $16.18 in afternoon trading. They closed up 3.5 percent at $15.01 Wednesday after opening at $14.50.

[Associated Press]

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