Burger King to be Bought by Brazilian Billionaire

Forbes reported that the fast food chain Burger King (Burger King Holdings (BKC)) has agreed to be bought by private equity investment firm 3G Capital.

3G Capital is controlled by the Brazilian billionaire Jorge Paulo Lemann, who made his fortune with breweries and investment in Brazil. The agreed upon price is $3.3 billion. The announcement of the deal resulted in Burger King's stock jumping for joy to $23.40. Burger King is the nations second largest junk food chain after McDonalds and had been struggling to sell it fast food to it's fleeing patrons, while watching McDonalds eat their lunch.

Burger King has over 12,100 locations world wide, but the marketing approach of McDonalds has been more successful than the approach of the runner up's. Both companies basically sell the same food (or what might be called food) to the same (mostly uneducated) consumers. Nonetheless McDonalds has managed to make its brand hip, at least in some countries in Europe, while Burger King never had any luck with upping it's image.

Lemann has proven in the past that he had a knack for increasing a companies value and reselling it later with huge profits. In this case the value of Burger Kind can easily be doubled within the next 3 years with the right marketing approach. It is all about how the brand is perceived. One subtle change that could for example switch the brands image are the beverages. Aligning Burger Kind with the proper (hip) brands would be one of the first things that I would suggest. Then I would find the right ambassador to represent the brand.