Burger King UK’s listing on the stock market comes a step closer as private equity owner lines up investment banks, report claims
- Bridgepoint has been the master franchisee for Burger King UK since 2018
- The hedge fund formerly owned the popular food-to-go chain Pret a Manger
- It is hoped the fast-food firm’s IPO will happen sometime in the first half of 2022
Financial services giants Bank of America and Investec have been hired to propel the public listing of Burger King’s British arm, according to a report.
Sky News said that hedge fund Bridgepoint Capital has brought on the pair in the hopes of completing the fast-food firm’s initial public offering sometime in the first half of next year.
Bridgepoint has been the master franchisee for Burger King UK since 2018, with around 150 outlets under its control, including 17 it bought from Essex-based franchisee Zing Leisure back in May.
It had initially been looking to sell the business and began a process earlier in the summer to find a buyer, something Sky also first reported, but the news channel said it had spoken to sources in the City who believe an IPO is more likely.
Franchisee: Bridgepoint Capital holds both the UK and French franchises of the Burger King restaurant chain from Restaurant Brands International (RBI)
As well as the UK franchise, Bridgepoint holds the French franchise of the restaurant chain from Restaurant Brands International (RBI), a holding company formed in 2014 from the merger of Burger King and Canadian brand Tim Hortons.
Bridgepoint has a long history of investing in hospitality businesses, including being the owner of Pret a Manger, which it sold to Krispy Kreme owner JAB Holdings for £1.5billion just seven years after buying it for £364million.
In addition, the group purchased restaurant brands ASK Italian and Zizzi, took a minority stake in East Asian-inspired dining chain Itsu earlier this year and has put money into takeaway firm Deliveroo.
The company recently went public on the London Stock Exchange, intending to raise around £300million to fund its expansion plans and potentially enter new markets, including infrastructure and real estate, and boost investor returns.
This came after a decade of significant expansion where the level of assets under its administration more tripled from €9billion in 2011 to €27.4billion this year.
Going green: Burger King UK is aiming to become a more sustainable business, with pledges to get rid of single-use plastic by 2025 and have half of its menu items be plant-based by 2031
‘Floating will represent a bet for Burger King’s management team and stock market investors on a sustained recovery for the UK’s pandemic-hit restaurant industry,’ Sky remarked.
Burger King UK has benefited significantly this year from its partnerships with delivery firms such as Just Eat, which have themselves seen orders made on their online platforms soar through the roof during the pandemic.
Looking ahead, the group is aiming to become a more sustainable business, with pledges to get rid of single-use plastic within four years and have half of its menu items be plant-based by 2031.
A few hospitality businesses have been listed on the London markets this year, including Mexican-themed chain Tortilla and Deliveroo, which had a disastrous opening due to investor concerns about the platform’s lack of profitability and treatment of staff.
This has come amidst a surge of IPOs in the UK, such as greeting cards seller Moonpig, bootmaker Dr Martens and payments app Wise, which had the largest ever listing by a technology firm on the London Stock Exchange with a value of over £8billion when it debuted on July 7.
More companies started listing on the UK capital’s markets in the first nine months of 2021 than at any time since 2014, though the number of new entries has slowed in recent months.
Burger King UK has not yet commented on the Sky News story.