In a major move that sent shockwaves through the fast food industry, 3G Capital acquired Burger King in October 2010. The parent company, privately owned and controlled by 3G Capital, now operates over 12,300 restaurants worldwide, with the majority owned and managed by independent franchisees. Forbes considers only net revenues to the parent company, reflecting how this acquisition will potentially impact Burger King's overall revenue and future growth.
Burger King's Ownership Saga: From Birth to Present
Burger King, a global fast-food giant, has witnessed a significant ownership transformation over the years. This article delves into the background and pivotal moments in the company's ownership history, culminating in its current structure.
Early Years and Foundation
Burger King was founded in 1953 in Jacksonville, Florida, by James McLamore and David Edgerton. The duo opened their first drive-in restaurant called Insta-Burger King. By 1959, they had established a corporate entity named Burger King Corporation.
Expansion and Growth
In the decades that followed, Burger King embarked on an ambitious expansion strategy, opening restaurants across the United States and internationally. During this period, the company was owned and operated by its founders, James McLamore and David Edgerton.
Acquisition by Pillsbury
In 1989, Pillsbury Company, a diversified food conglomerate, acquired Burger King for approximately $578 million. Under Pillsbury's ownership, Burger King continued to expand globally and introduced new menu items, such as the Chicken Fries.
Sale to Diageo
In 1997, Diageo, a British multinational beverage company, purchased Pillsbury for $10.3 billion. Burger King became a wholly-owned subsidiary of Diageo, which subsequently sold the company three years later.
Acquisition by TPG Capital
In 2002, a private equity firm called TPG Capital led a group of investors to acquire Burger King from Diageo for $1.5 billion. TPG Capital overhauled the company's operations, including closing underperforming restaurants and focusing on menu innovation.
Sale to 3G Capital
In a major shakeup in the fast-food industry, 3G Capital, a Brazilian investment firm, acquired Burger King from TPG Capital in 2010. The acquisition sparked speculation about the future of Burger King and the industry as a whole.
Current Structure
Under 3G Capital's ownership, Burger King's revenue has grown significantly, and the company has expanded its global footprint. The parent company, Restaurant Brands International (RBI), now operates over 12,300 Burger King restaurants worldwide, with most of them franchised.
Top 5 FAQs on Burger King's Ownership History
1. Who founded Burger King? James McLamore and David Edgerton
2. When did Burger King become a public company? Burger King has never been a public company.
3. What company currently owns Burger King? Restaurant Brands International (RBI)
4. How many Burger King restaurants are there worldwide? Over 12,300
5. What is the main strategy of 3G Capital as the owner of Burger King? To focus on cost-cutting and operational efficiency while expanding the company's global presence.
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