Plans for a stock market floatation of Burger King looked unlikely yesterday as parent company Diageo revealed that restructuring the chain would cost £50m.

Consumer concerns in Europe over foot and mouth and BSE, and long standing difficulties in the US market, have added pressure to the loss-making company, said Diageo. It added that this meant that a management buyout or a trade sale was now a more likely course of action.

John Dasburg, who took over BK in April, is currently renegotiating franchise deals that, for the year to 30 June, are expected to cost £50m.