ackmann

Quote of the Week: Of Justice and Burgers

by

April 16, 2012

“Justice is a dish best served flame broiled…”

 

Who said it: Bill Ackman, CEO of Pershing Capital Mgmt, a hedge fund manager

 

In Context: The quote is the lead to a presentation that Business Insider made available to readers on the investment case for Burger King’s acquisition by Justice Holding. BK is poised for an IPO post-merger, according to the FT. The restaurant chain was acquired by PE investor 3G Capital only eighteen months ago. Skepticism about PE backed IPOs is not unusual in the past few years, and this one is no different, except in the volume of media coverage. Perhaps it is because the target company is so well known to consumers. Justice is a UK holding firm that was co-founded by William Ackman and several other wealthy investors, according to the report. The combined company will then float on the NYSE. The issue for analysts is that 18 months isn’t long enough to do a turnaround. 3G has been cutting Burger King’s costs, and up scaling the menu with high-margin products like smoothies and salads. Burger King is now the number three hamburger chain worldwide. McDonald’s leads, followed by Wendy’s. Ackman has had investments in both of these other fast food chains in the past. Image Source: Floating University

 

Where we found it: Business Insider

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