Friday, February 15, 2013

3G Capital and Warren Buffet on the Fast Food and Condiment Businesses

Burger King, Chalco (Mexico)
Tampa, (Fl) -- It seems the scandal with horse meat on their products hasn't stop the expanding revenue of Burger King after they cut ties with Irish company Silvercrest Foods and now Burger King will have a relation with the iconic tomato sauce company Heinz as both companies are in the power of Brazilian equity giant 3G Capital who have also a commercial pact with Berkshire Hathaway into owning iconic American items.

The sales of the company despite the scandal have been relative positively worldwide but without any breakthrough around the 13,000 stores it have on 86 countries world wide.

The acquisition by the partnership had boosted the shares by 4.7 per cent on Friday after the company reported a 94 per cent jump on their fourth-quarter net income to US$48.6 million. Analyst are forecasting earning of .15 cents per share over a US$375 million revenues with the exclusion of special items. Burger King who has been on a third place below McDonald's and Wendy's has introduced new products on the menu to match what the competition have offered for a couple of years in order to keep fighting in an economy where customers rather eat at home instead of eating outside.