Quote:
Originally Posted by Erick Estrada
3G Capital has actually made a lot of positive improvements since taking over Burger King so I don't know what you are trying to say there. Since taking over in 2010 Burger King's profits margins have tripled. If that's a brutal company I look forward to hearing your opinion of a great company.
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Well to each their own. It is true that since 3g became involved there have been big improvements there, but when you look at the balance sheet there isn't much to get excited about. Annual revenues were down by a significant amount, and the gains came on the back of cost cutting and layoffs. Again, that's fine, but as an investor you have to recognize its not likely repeatable for the long term. I also fail to see what synergy this merger provides? I mean yes, there is the obvious tax savings for BKW, but that's the major point. In the US (at this point) the Tim's brand is basically a non-factor. In Canada the Burger King brand is an also ran.
Personally I love both. I worked at a Burger King when I was young and it's my preferred fast food restaurant. I also love Tim's. From my point of view, the fact that I might be able to buy a whopper and coffee in one stop is pretty awesome.