Restructuring / Turnaround Strategies Case Study

Burger King's Turnaround: Courtesy the Private-equity Firms

Abstract:
The world's second largest fast food restaurant has been facing declining profits and market share since the late 1990s. In 2002 three private-equity firms bought Burger King and turned the company's operations around. In 2006 the private-equity firms announced their exit through an IPO. These events have brought to the fore the concerns whether the company has been actually turned around, and whether IPO is the appropriate exit strategy.

Pedagogical Objectives:

• To discuss Burger King's turnaround
• To understand the various exit strategies available to the private equity firms
• To analyse whether IPO is the right exit strategy for the owners of Burger King.

Keywords : Private Equity firms; Initial Public Offer (IPO); Customisation; Restructuring / Turnaround Strategies Case Study; Customer Relationship Management (CRM); Franchisee relationship management; Exit strategy for private equity firms; Troubled times; Positioning strategy; Marketing; Culture; Customer centric approach; Restaurant design