My Home     About Me

Burger King (BKC) served up a financial whopper and pleased the market with really great financial news. The company has been dogged by Billionaire Nelson Peltz who claims he can do something better. Prior experience at Arby's is influencing his opinion. So if you believe the numbers what does a take over offer provide to investors.

Burger King has improved dramatically. They spun off Tim Horton's. They sold that Baja Fresh Mexican Grill thing that was losing money. They increased their store count dramatically and improved hours and menu. Some minor problems with permits in the Middle East and Germany.

The critical management comment is that the ARS is up dramatically. Given the high fixed cost nature of a Burger King Store this is wonderful news.

Now if you are trying to take-over Burger King you have to pay for it. The argument that I can fix your problems will no longer work.

Note to management: If the earnings and cash flow are improving you need to increase your dividend. You are a cash business and your fundamentals have improved dramatically. In the current market where fear and panic is just around every corner an increased dividend would attract investors and strengthen the share price.

bailout   Basic Materials SPDR (XLB)   bond trading   bond yields   capitulation   climactic   commodities   credit crisis   credit crunch   Currency ETFs   day trading   Deron Wagner   DJIA chart   economic data   Emini's Nas 100   emini's S&P 500   emini's S&P 500e   ETFs (exchange trade funds)   ETFs (exchange traded funds)   Gold Miners ETF (GDX)