It has finally been decided that former railroad executive Bernardo Hees will be the CEO of Burger King Holdings Inc. This will occur once the $3.3 billion leveraged buyout by 3G Capital Management is completed, later this year.
Mr. Hees has an impressive history in business. He was a logistics analyst at America Latina Logistica (based in Brazil) before becoming chief financial officer, chief operating officer, and ultimately chief executive. Even though he has stepped down, he will still be on the board. However, while Mr. Hees was the CEO of America Latina Logistica, the company reported a doubled second-quarter net profit from the year-earlier period. Furthermore, Mr. Hees is a partner at 3G Capital Management.
Due to the recent loss of stock, analysts anticipate Mr. Hees position will help Burger King Holdings Inc, even though many previous CEOs of Burger King have had experience in other fields, including airlines and hotels.
I believe Mr. Hees will make a difference in Burger King. Burger King's main problems are "weak sales and franchisees unsatisfied with corporate spending to boost the brand." Furthermore, Burger King is doing poorly in the market place because the company has not changed its menu to accommodate new desires of its consumers, whereas McDonald's menu has changed. Another problem is: Burger King is advertised towards people aged 18-24. This age group is currently suffering from the high unemployment rate. Though the company is suffering, I believe Burger King is mostly following its mission statement of supplying costumers with "exceptional, consistent services (as well as burgers, fries, and drinks). On the other hand, I also believe Burger King should change its menu around a bit and take a few more "risks" with corporate spending to really boost the company. Hopefully Mr. Hees will be able to make these changes and greater ones.
http://online.wsj.com/article/SB10001424052748703960004575481482827393778.html?KEYWORDS=burger+king
Burger King Mission Statement: http://www.helium.com/items/800617-burger-king-the-facts-about-the-second-largest-fast-food-restaurant
This new CEO definitely seems qualified enough to take over the Burger King Corporation. Considering he became a chief financial officer, chief operating officer, and ultimately chief executive, he should definitely be able to put Burger King back on track. I'm sure he plans to alter the menu's as McDonald's did in order to accommodate new desires of its consumers.
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