SHANGHAI - Burger King, the number-two fast-food brand to McDonald's, may float shares as early as next year as it returns to growth after years of restructuring.
The chain should also post its strongest gain in same-store sales since 1984 for its fiscal year to June 30, chairman and chief
executive Greg Brenneman said.
"An IPO is the most likely exit" for the company's current owners, said Brenneman, who was attending the opening of his first Chinese outlet in the heart Shanghai.
"Next year would be the earliest," he said. "The store count is taking off and is growing again for the first time in a long time."
As part of an expansion drive, the US hamburger giant marked its late entry into a Chinese market dominated by McDonald's and KFC, which have been slugging it out in the country for over a decade.
Burger King, which operates more than 11,000 restaurants in 65 countries - about a third of McDonald's total - had suffered in recent years from a lack of clear identity in consumers' minds and shaky franchisee relations.
The chain is now owned by private equity investors Texas Pacific Group, Goldman Sachs Capital Partners and Bain Capital, which bought the brand for about US$1.5 billion ($2.12 billion) from British drinks giant Diageo in 2002.
Before the buyout, the company suffered from a lack of direction that included an absence of major new initiatives in the fast-changing and highly competitive industry.
After years of restructuring under new ownership, the chain, with US$12 billion in system sales for its last fiscal year, was now returning to growth, Brenneman said.
Burger King's initial foray into China is part of a global effort to fatten the company for an eventual sale.
Brenneman acknowledged the chain's late arrival to the market but cited a Chinese proverb: "He who comes last is often first."
- REUTERS
