The Real King

Let’s face it – Burger King will never top McDonald’s in the fast-food industry. McDonald’s simply has the closest thing to a monopoly as possible on the planet. However, Daniel Schwartz, the new chief executive, wants to change that.

Burger King is supposedly buying Tim Hortons, a Canadian coffee-donut chain, for $11.4 billion. This will be the largest-ever acquisition of a restaurant chain.

A Burger King and a Tim Hortons in Canada. Burger King is in talks to buy Tim Hortons for more than $8 billion.

This is simply another piece in Schwartz’s plan to bring Burger King to the next level. Ever since 2010, Mr.Schwartz has been cutting costs and expenses in the company, selling more restaurants to franchise owners and reducing the amount of money and employees needed to run it. Then, Mr. Schwartz led the buyout of Burger King by a Brazilian investment firm named 3G. Ever since 2012, the company’s value has doubled.

After the cost-cutting, suddenly Mr. Schwartz and 3G are putting major money into the company, planning on buying Tim Hortons and further expanding their growing empire. Essentially, they are attempting to emulate the success of Yum Brands, the owner of KFC, Pizza Hut, and Taco Bell. It is possible to thrive with more than one restaurant under one roof.

We’ll see if Burger King’s acquisition is a bust, or a win.


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