MIAMI, Nov. 19 /PRNewswire/ — Sydran, the third largest franchise operator of BURGER KING® restaurants, today announced that it has completed a financial restructuring with participation from Burger King Corporation (BKC). The restructuring will allow Sydran to meet its financial obligations and upgrade its BURGER KING® restaurants. Sydran operates 264 BURGER KING® restaurants throughout the United States.
Under the agreement, BKC will loan Sydran funds to invest in their restaurants with such initiatives as new drive-thru menu boards and the new “Phase I Kitchen” currently being installed in BURGER KING restaurants across the country. Additionally, Sydran has sold 39 Chili’s® restaurants to Brinker International and will use the proceeds to pay down existing loans.
“We are delighted with this agreement,” said Matthew Schoenberg, president of Sydran, “and we thank the new management team at Burger King Corporation for working with us to allow us to invest in our business. We are proud to be BURGER KING® franchisees and we are excited about the direction John Dasburg and the new management team are taking the brand.”
“We are making this investment because we have confidence that the capital investments we are asking our franchisees to make in their restaurants will enhance the business model of the BURGER KING® brand well into the future,” said Ben Hirst, executive vice president and general counsel, Burger King Corporation. “We also have confidence in the Sydran team to operate quality BURGER KING® restaurants.”
The restructuring was led by JPMorgan, the investment banking arm of JPMorgan Chase & Co.
Burger King Corporation was founded in 1954 and created the American icon, the HOME OF THE WHOPPER®, in 1957. The company and its franchisees operate more than 11,370 restaurants in all 50 states and 58 countries and international territories around the world, with more than 92% of BURGER KING® restaurants owned and operated by independent franchisees. Since the company’s founding in Miami in 1954, the BURGER KING® brand has become recognized for great flame-broiled taste and HAVE IT YOUR WAY® food customization. In fiscal year 2001, the BURGER KING® system had system-wide sales of $11.2 billion. Burger King Corporation is a part of Diageo (NYSE: DEO – news), the international food and drinks company. To learn more about the BURGER KING® system, please visit the company’s website at www.burgerking.com.
SOURCE: Burger King Corporation