Contrarian Corpus
activist full deck initial thesis
2012-04-04 · 9 pages

Burger King Worldwide Holdings BKW

N 3 Narrative
V 2 Visual
C 2 Craft
Original source ↗

The three reasons

  1. 1

    Back best-in-class 3G management team retaining 70%+ equity

  2. 2

    Strategic refranchising will lift margins (only 92% franchised today)

  3. 3

    Massive international whitespace beyond current 80-country footprint

Primary demands

  • Combine Justice Holdings with Burger King via $1.4bn investment to relist BKWH on NYSE
  • Back 3G Capital management team to execute refranchising and turnaround
  • Pursue international growth and refranchising-led margin expansion

KPIs cited

Total Enterprise Value
$8.1bn TEV at transaction
Net Debt
$2.6bn as of 2/29/12
Equity Value
$5.5bn implied by Justice transaction
Restaurant footprint
12,512 restaurants across 80 countries
Franchise mix
~92% of systemwide restaurants franchised
Systemwide sales
$15.3bn in 2011
Adj. EBITDA - Capex
$503mm in 2011
Leverage
Net Debt / Adj. EBITDA of 4.5x
Management turnover
13 CEOs in past 25 years prior to 3G
Justice cash consideration
$1.4bn paid to partner with BK owners
Pro forma 3G ownership
3G Capital & Management retain 70.7%

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns.

Notable slides (6)

Notes

This is not a classical activist short/long thesis but a SPAC-merger announcement deck: Justice Holdings (Bill Ackman / Nicolas Berggruen / Martin Franklin's London-listed cash shell) is investing $1.4bn to bring 3G's Burger King back to public markets on NYSE as BKWH, with 3G retaining 70%+. ToC promises sections on Best-in-Class Management, Strategic Refranchising, Turnaround Opportunity, International Growth Potential, Valuation, and Conclusion, but the PDF appears truncated at 9 pages — only Transaction Overview and the start of Company Overview/History are present, and several pages have right-edge text cutoff. Memorable cover tagline 'Justice is Best Served Flame Broiled' is a clever brand pun. Visual production is plain text-on-white with basic blue section dividers; not Ackman's Canadian Pacific tier. Likely a partial/excerpted version of the original investor deck.