GE Capital, Franchise Finance, an operating unit of the
General Electric Company
), recently offered a credit facility worth $80 million to
BurgerBusters Inc., a franchisee of Taco Bell Corp. The
transaction is expected to enhance the liquidity of BurgerBusters
and facilitate its working capital requirements to drive further
Based in Virginia Beach, VA, BurgerBusters owns and operates fast
food restaurants for Taco Bell, one of the leading brands of the
quick service restaurant (QSR) operator
Yum! Brands, Inc.
). The company also manages other Yum! Brands such as Pizza Hut
and KFC franchised units throughout Virginia, North Carolina,
West Virginia and Maryland.
Taco Bell is a premier Mexican-style QSR chain serving over 36
million consumers each week through 6,000 restaurants in the U.S.
In addition to made-to-order and customizable tacos and burritos,
it offers specialties such as the exclusive Doritos Locos Tacos,
gourmet-inspired Cantina Bell Menu and lower calorie Fresco Menu
through its franchisees. The franchise-centric model is a common
practice in the restaurant industry as it helps to reduce
volatility in earnings and enhance cash flow generation.
BurgerBusters will utilize the credit facility from GE Capital,
Franchise Finance to refinance its existing debt. At the same
time, it will utilize the borrowed capital to acquire more Taco
Bell units in newer locations. Currently, it operates 83 Taco
Bell restaurants across the region.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content and
industrial products, the company serves over 100 million
General Electric's segments include Power & Water, Oil &
Gas, Energy Management, Aviation, Healthcare, Transportation,
Appliances & Lighting and GE Capital. With 30 years of
experience in consumer financing, GE Capital, Franchise Finance
is one of the most successful retail lenders in the U.S. It
primarily offers financing to mid-market operators with multiple
stores in the restaurant and hospitality industries.
General Electric currently has a Zacks Rank #4 (Sell). Stocks in
the industry that warrant a look include
), both of which carry a Zacks Rank #2 (Buy).
GENL ELECTRIC (GE): Free Stock Analysis
3M CO (MMM): Free Stock Analysis Report
MITSUBIS CP-ADR (MSBHY): Get Free Report
YUM! BRANDS INC (YUM): Free Stock Analysis
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