Burger King acquires 57 restaurants; acquisition underscores company's commitment to growth.MIAMI--(BUSINESS WIRE)--Jan. 31, 1996--Burger King Corp. announced Wednesday Wednesday: see week. the acquisition of 57 Burger King(r) restaurants from Davgar Restaurants Inc. in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and and Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . The $55.6 million purchase from Davgar owner Manuel Garcia Manuel Garcia can refer to:
"This investment reinforces our strategy of developing the system through both company owned and franchised restaurants and underscores our commitment to the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth of Burger King(r)," said Robert C. Lowes, chairman and chief executive officer, Burger King Corp. The strategic refranchising program of certain Burger King(r) restaurants completed last year allowed the company to meet the demands of its franchisees who wanted to extend their restaurant base. It also enabled the company to concentrate its resources in its strongest geographical areas. Lowes added: "With the refranchising program complete, we now expect the company store base to grow in proportion to the growth in the franchisee network, with worldwide company owned stores continuing to represent about 10% of the total system and franchised stores, about 90%. This acquisition of over 50 restaurants in a high growth area allows us to improve operations and profitability. We are excited about this opportunity." Including this acquisition, Burger King now owns 505 of the 6,620 Burger King(r) restaurants in the U.S. system. The acquisition now positions Burger King Corp. as one of the largest employers in its home state of Florida, with more than 8,000 people employed at 153 restaurants and at its World Headquarters in Miami. Former Davgar employees are being offered similar positions with Burger King Corp. For the financial year ended Sept. 30, 1995, Burger King reported worldwide system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. of $8.4 billion, a 12% increase over the prior year. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , which accounts for approximately 85% of Burger King's business, comparable store sales for the year increased 6.4%, bringing the two year comparable sales growth increase to 12.9%. Burger King Corp. is a subsidiary of Grand Metropolitan PLC, one of the United Kingdom's largest international companies. GrandMet is a world leader in the food and drinks business with sales of $12.5 billion. Other U.S. subsidiaries of GrandMet include the Pillsbury Co., Haagen-Dazs, Carillon carillon, in music: see bell. carillon Musical instrument consisting of at least 23 cast bronze bells tuned in chromatic order. Usually located in a tower, it is played from a keyboard. Most carillons encompass three to four octaves. Importers, Heublein Inc., The Paddington Corp. and Pearle Inc. Burger King Corp. and its franchisees operate more than 8,200 restaurants in 56 countries and international territories worldwide. In Fiscal Year 1995, Burger King had system sales of $8.4 billion. CONTACT: Burger King Corp., Miami Cori Zywotow or Kim Miller, 305/378-7277 |
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