Following hard on the recent departure of CEO Dennis Malamatinas, Burger King must now cope with the announcement that its chief financial officer will be leaving at the end of the month.
Colin Heggie has accepted the position of executive vice president and chief financial officer within Fitness Holdings Worldwide, after spending five years in the executive ranks of the world’s second largest fastfood chain, owned by drinks behemoth Diageo of the UK.
The company has had to appoint executive officers from its sister company Guinness to help weather the storm. New president Mikal Durham is now controlling BK’s North American business, and Colin Storm is the interim CEO, although he made it clear that he intends to leave within a year.
After Diageo revealed last month that sales have fallen over the last two years, Burger King is under much pressure to increase sales, and the high turnover in executive staff members has done little to improve relations with the 11,150 franchisees worldwide. In addition, a new permanent CEO must be appointed before Diageo’s plans to split off 20% of the company by the end of 2001 can be executed. The public offering has led to speculation that the remaining 80% of Burger King will be floated by 2002.