Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Future
Burger King Worldwide is actively transitioning from being a USA-based, global hamburger chain, to a Canada-based diverse restaurant chain. BKW’s recent Tim Hortons acquisition and the creation of Restaurant Brands International has both BKW and Tim Hortons poised to grow much faster globally—but where, when, why, and how? Some analysts assert that RBI’s financial fundamentals are excellent. Same-store sales at Burger King and Tim Hortons rose 2 percent and 3 percent, respectively, in 2014, which is excellent. However, RBI operates from a desired 100 percent franchised-model, so future earnings largely rely on fixed-cost reductions and post-merger synergies. RBI shareholders are not pleased with the decline in 2014 net income, and are ...
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