In order to strengthen its global footprint, the famous
hamburger restaurant chain
Burger King Worldwide
) recently inked a joint venture deal with restaurant operator
Groupe Olivier Bertrand in France. The financial terms of the
deal were not disclosed.
Additionally, France-based asset management firm, Naxicap
Partners, will hold a minority interest in the agreement.
Per the deal, Groupe Olivier Bertrand will act as Burger
King's long-term master franchisee and developer of 250
restaurants across France. Following the agreement, Groupe
Olivier Bertrand will also have Burger King's sub-franchise
rights in the country. The restaurateur expects the joint venture
to create nearly 1,200 jobs in the country in the first year of
Owned by Bertrand Holding Company, Groupe Olivier Bertrand
boasts a solid presence in the restaurant and hotel industry in
France. It operates more than 250 restaurants across the country.
The franchisee's strong operational abilities and sound knowledge
makes it a perfect fit for the partnership.
After leaving the French market in 1997, Burger King returned
in 2012. Since its reopening, the restaurateur has witnessed
solid growth potential in the country which is expected to be the
reason behind this expansion plan. Further, the country's
consumers also have an inclination toward American food products.
World's biggest U.S.-based burger chain
) has successfully established its presence in the country.
Burger King projects to achieve 20% market share in France
which holds the crown of Europe's largest quick-service
restaurant market. The company, famous for its Whooper sandwich,
also expects to become the market leader in the hamburger
category in the country.
Burger King remains committed to accelerate international
expansion in high-growth potential markets. Last week, the
company signed a joint venture agreement with the private equity
and real estate firm - Everstone Group - to step into the
lucrative Indian market.
In the recent times, the restaurateur has also initiated
ventures into key markets like Russia, China, Mexico, France,
Central America, South Africa, the Nordic countries, Singapore,
Malaysia, Korea and Vietnam to boost its business.
Burger King holds a Zacks Rank #2 (Buy). Investors interested
in the restaurant industry may consider stocks like
Buffalo Wild Wings Inc.
Darden Restaurants, Inc.
). While Buffalo Wild Wings carries a Zacks Rank #1 (Strong Buy),
Darden Restaurants holds a Zacks Rank #2.
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