Romney's Bain Bled Burger King Dead: Inversion Perversion is Maneuver for Life Support

[laserhaas]

Willard Mitt (the Pitts) Romney has established a most profitable business model; it's called glean n dump. Show them a pic of the moon, promise the sun, while providing a little red wagon of dirt to get within. Then you meet, greet, scheme the entity for all its worth. If the chief executive can be bought (like Michael Glazer of Kay Bee & Stage Stores); you win easily. Others (hard cases like yours truly), you hire away, fire and/or destroy.

Then you milk & bilk for all the company is worth and get away ('Scot Free').

Burger King has been dying for decades. You take it public, bleed out the cash; then rinse lather and repeat, as long as it lasts. Recent reports (prior to this Canadian merger) state that Burger King Worldwide (stock symbol BKW) - has been up in sale, up in profits - and beating out the rest of the fast food chain world, along with exceeds of Wall Street analysis.

Have you been in a Burger King lately - during lunch/dinner rush;

-------------------------------and seen the reality there isn't - any - r u s h?
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Burger King's REAL History

For some reason yet to be fully determined, Romney & his Bain only go IPO as a last resort. Choosing, instead, to stay away from the Securities & Exchange Commission (SEC) as much as possible. When they do get involved in public entities and/or IPO's (those not thwarted like yours truly did to Toys R Us {with the help of Joe Nocera of the NY Times "Rigging the IPO Game"}) - they then dump the dying carcass upon another. See NYT Nocera's OpEd "Burger King the Cash Cow".

In the case of Burger King - Romney's group got in for $210 million, took out $500 million and went public owning 76%.

Then, Goldman Sachs Capital Partners, along with Bain Cap. & TPG, sold Burger King to 3G Capital for $3.3 Billion.

See some of the details in NY Times Nocera remarks that;

But the private equity investors also cut themselves an incredibly sweet deal. Their $1.5 billion purchase price included only $210 million of their own money; the rest was borrowed. They immediately began taking out tens of millions of dollars in fees. Four years later, they took Burger King public. But, first, they rewarded themselves with a $448 million dividend. In all, according to The Wall Street Journal, “the firms received $511 million in dividend, fees, expense reimbursements and interest” — while still retaining a 76 percent stake.

Does it need to be said that Burger King was soon back to its old struggling self? Or that the solution, once again, was to sell to another private equity firm? Of course not! In 2010, Bain, Goldman and TPG cashed out, selling Burger King to 3G Capital, for $3.3 billion. In sum, the original private equity troika reaped a fortune by selling a company that was in nearly as much trouble as it had been when they first bought it. Surely this represents the apotheosis of financial engineering.

What has 3G done? According to Howard Penney, the managing director at Hedgeye, it has prettied up the pig by laying off a large percentage of the staff in Burger King’s Miami headquarters. Burger King’s owners grew earnings, he said, “by cutting expenses. They have not improved the business one iota.” And, of course, 3G pulled out fees and dividends, too. In all, Penney wrote recently, private equity firms have taken for themselves “$1 billion or more in capital that could have been used to improve the company’s relative standing versus its competitors, many of whom Burger King struggles to keep up with.”

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The STREET Reports on (current) Burger King Extraordinary Success

[br]
Burger King - according to its report - is (reportedly) kicking arse in sales;
as reported upon by The STREET - that -.
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The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Hotels, Restaurants & Leisure industry average. The net income increased by 19.4% when compared to the same quarter one year prior, going from $62.90 million to $75.10 million.

The gross profit margin for BURGER KING WORLDWIDE INC is currently very high, coming in at 85.07%. It has increased significantly from the same period last year. Along with this, the net profit margin of 28.75% significantly outperformed against the industry average.

Net operating cash flow has significantly increased by 71.15% to $87.80 million when compared to the same quarter last year. In addition, BURGER KING WORLDWIDE INC has also vastly surpassed the industry average cash flow growth rate of -5.65%.

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For the last few months - BK was selling 2 for $5 major sandwiches - including the Whopper.

Have you been in a Burger King lately?

When it sounds too good to be true........

[br][hr][br]

MoveOn.org has a Petition Against the Inversion that is a perversion;

all this is but a prelude to the other BK for Burger King

BANKRUPTCY

http://petitions.moveon.org/sign/burger-king-dont-try?source=Facebook

[daleanime]

1. K&R....

[laserhaas]

2. Thanks 'daleanime' (a very unique moniker)

[daleanime]

7. Given to me by an old roommate....

who had introduced my to the Internet.

[frazzled]

3. Looks like it was dead before they got it

They just "picked the carcass," as Nocera put it ... enriching themselves through schemes based on borrowed money and doing nothing to revive the already dead company. According to this article, it was dead beginning in the 80s, if not earlier. It's just been serving as a front for various vulture capital schemes for the past three decades.

It should be left to die a natural death.

[ChisolmTrailDem]

4. As much as I agree that Bain is a bane on the good people of this country, Burger King seemed

to already be on it's way down.

It's been many years since I've graced the threshold of a Burger King location.

I blame this creepy guy (and their meh food):

[Chakab]

20. I stopped eating fast food in my early 20s, but I never understood this ad campaign.

Even if I were open to eating the poison that they call "food" at BK, this character would probably have put me off of it.

How does something so ridiculous get approved by the leadership of a two major companies (BK and whatever advertising outfit came up with it) and get millions of dollars in funding thrown at it?

[laserhaas]

22. Several articles point out the "letting go" of the AD company

You'd have to totally make over the entire chain;
to have any hope of keeping the flame

lit...

[IDemo]

5. "Have you been in a Burger King lately?"

Reagan was president the last time I ate there. Maybe it's a staycott instead of a boycott for me.

[corkhead]

6. I stopped eating there when they got busted serving kangaroo meat back in the 80s

I worked there in the early 80s. I was ahead of my time. I experienced sub living wages before it was popular but at least I could grab a bite to eat out of the waste bucket when I was hungry.

Thankfully it was a great motivator to get an education and I got a real job after that.

[Fred Sanders]

8. The merger still requires approval by the Canadian government. Is there anything other than

the America centric viewpoint on this?

[laserhaas]

9. Don't know... IF Canada pays attention to the fact that they're getting a "BK" (bankrupt) entity

then - they'll reject the move.

That is (of course) unless the money greases the wheels there too.

[Fred Sanders]

11. Tim Hortons stock is up from C$55 to 85 so someone got greased and some got the beef.

But the market price is 10% below the per share purchase price, so the market has some doubt about the approval.

Meanwhile BK stock is down 15%. The tea leaves are telling me something, I need to consult with the oracles on this one.

[underpants]

10. I saw Robert Reich speaking on TV about this a few nights ago

It really isn't a business any more. It only exists to be a financial instrument to be played with.

[LongTomH]

51. That seems to be the new American business model: Buy up a company and treat it as your......

.....own personal ATM machine. Capitalists don't make their money by providing services or products any more; they just play games with money, always screwing both workers and the public in the process.

[laserhaas]

53. concur. and its against the law RICO; but Corps own

The courts

Nothing can be done until we (REALLY) unite against it.

[packman]

12. Capital Darwinism at its finest

well, really at its worst. Never cared much for Burger King and went there only to break the same-old same-old routine of eating out;however, feel sorry for the lower management and workers of the chain to be caught in this feeding frenzy of the 3%ers.

[TRoN33]

13. In Brattleboro, VT there are...

Small but growing contingent of protests against Burger King. All of them are young and struggling adults. Remember, Brattleboro is also the first town in nation to block renewed license for nuclear power plant. We are also the first one to indict W. Bush and Cheney for war crimes.

I took notice that parking lot of BK is also shrinking...

[handmade34]

18. we go ya one better up north

we never got one

[laserhaas]

19. What -- NO Burger King in the V?

[handmade34]

25. no, just

meant in our little town.... even most of Vermont has sold out pffttttt

[laserhaas]

28. :(

[benld74]

14. I recently got into a FB arguement with,,

an invidual lording over corporation takeovers. It went back and forth between us for around 10 postings, until he stated his company wouldn't have been able to survive without its take over, nor develop new products, find new customers.
I congratulated him and his company and then listed companies who were NOT so lucky as his, and perhaps his is not completely finished either

No reply from him after my last post.

me thinks I may have struck a nerve,,,,,,,,

[C Moon]

15. I ate there twice over 10 years ago because the put a veggie burger on their menu...

both times I was mildly sick the next day. Can't blame them for sure, but I never took the chance again.
...and if I recall, their french fries were boring.
...also, I believe they were the ones who were fined (or warned) because they weren't cooking their food at a high enough temperature.

[El Shaman]

21. welcome

To the club.

[C Moon]

23. You got sick, too? Okay, I believe it was BK, then. Thx.

[MH1]

42. I liked their veggie burger and also their fish sandwich.

It has been a LONG time since I've eaten at one because there is no longer a location convenient to me, and I eat a lot less fast food these days than I once did.

In the distant past, if I had to stop for fast food and the choice was Mickey Ds or Burger King, BK won HANDS DOWN. McD's couldn't make a decent fish sandwich if their life depended on it. Best way to confuse the f*k out of a McDs counter person? Ask for a fish sandwich WITHOUT CHEESE. But don't bet anything on the resulting sandwich actually being without cheese. (Cheese on a fish sandwich? Who DOES that, anyway??)

When they came out with a veggie burger I was appreciative and ordered it whenever I could.

I may be a minority of one here, but I do miss what BK used to represent: a slightly palatable option in a sea of much worse.

[C Moon]

44. That's hilarious about the cheese!

[laserhaas]

45. you. have to understand us yids; we dont mix meat n cheese

Or - more technically - mix meat with dairy;

But can mix fish with dairy.

For non orthodox yids being semi kosher ( though we know there's no such thing) a filet of fish special is a 2 fer, before we get home on Friday nite.

[MH1]

46. Not a yid here, just don't understand putting cheese on fish.

Especially a fish sandwich ferchrissakes.

(I hated cheeseburgers when I was a kid, too (and actually still today) but understood it was a thing people did. Never got cheese on fish though.)

[laserhaas]

47. I didn't find out about my jewish ancestory until late

Learned at 44 that my (believed) grandma was actually step grand mother.

When I studied rhe Jewish (Moses law) diet; I was healed of heart burn. (Our stomachs digest dairy n meat differently)

I've stopped having cheese in any meat sandwiches and no milk with meals of meat.

Haven't had heartburn for a decade plus.

[leftieNanner]

16. Very informative -

Sad what these vultures can do. They don't create anything - just suck out the cash.

My nephew, when he was little, used to call it "Caca King". An appropriate name, I think!

[allan01]

17. vulture capitalisem at its worst

[graywarrior]

24. That shit didn't work at Market Basket

I despise those vultures having watched first hand what they tried to do here.

[El Shaman]

26. Bain

Capitalism!!

[House of Roberts]

27. Bain has Clear Channel by the throat too.

I keep waiting, (and hoping), for their collapse as well.

[laserhaas]

29. Romney=Bain=Clear Channel

= Red McCombs = Blackwater (renamed an innocuous "Academi&quot
http://www.democraticunderground.com/10025461077

That has former USAG - Ashcroft there too.

Fastest way to get rich - is to be a sell out public servant 1%'r bitch....

[pansypoo53219]

30. when is main street gonna stick a stake into these wall street vampires?

[onethatcares]

31. when all of us here on DU

strike up conversations and plant the seeds of doubt in peoples minds about what they are getting isn't what they are being told they are getting.

We are main street/

[laserhaas]

33. You are on the right path. When we unite of the purpose - that's when change will come.

Unfortunately - it is likely to be too little too late. We have to realize that WE (you & I - all at DU)

- are the TRUE main stream.

Wall Street & Washington D.C. - including massive knowledge of how to benefit from corruption;

is coming in 2016 -

When Romney gets in!

[BrotherIvan]

32. Finally...

You bust the joint out. You light a match.

A summary of vulture capitalism in one minute:

[laserhaas]

34. Busting out - no longer takes the risk of lighting a match/arson: but the bane of Bain

coming your way.

Once they get in - your end is well assured!

[laserhaas]

35. A real politico - These guys - work for this guy (Romney) now

[laserhaas]

36. These Guys - Romney - Part 2

[Yo_Mama_Been_Loggin]

37. K&R

[laserhaas]

38. thanks

[laserhaas]

39. The ravaging of corporate America will speed up its pace and black ops will keep U.S. occupied

When Mitt gets in - the best thing to do will be to sin

against each other.....

[riverbendviewgal]

40. I will keep on going to Timmy's

And will never go to Burger King. The food is crap.

[laserhaas]

41. Concur - outside of "satisfries" (which cost more) - I no longer enjoy the Whopper

that used to be my favorite (next to Wendy's)

really a crummy place (and I get discount coupons to go - all the time - but can't stomach the idea)

[Initech]

43. Vulture capitalism strikes again!

[laserhaas]

48. It will continue to get worse - until someone cares to stop it.

And - when Mitt gets in 2016

Wall Street gets to own DC, POTUS - and "friendly" USAG

Capone will own the prosecutors office!

[laserhaas]

49. I'm eating at a Burger King - right now- high noon; and the place is a dead zone.

A friend (who loves their 2 for 1 sandwich for $5) is paying.

We - and only 1 other table - with 2 ppl; are the only ones in the place.

This intersection is right off the highway, next to movies, Starbucks and a huge regular burger place that had a fire 2 weeks ago. So the place (should be) full of people;

but it's a dead zone!

Not even 2 cars through the drive thru - in the last 15 minutes. I'm looking at the size of my BK King and its pathetic (do they REALLY think we don't notice the reduction)! The only thing I like, is the refill on sweet tea and the Hershey pie (that you can get across the street at Target - for 50 cents cheaper).

UNREAL!

[laserhaas]

50. Burger King at High noon - is a Dead Zone

A friend (who loves their 2 for 1 sandwich for $5) is paying.

We - and only 1 other table - with 2 ppl; are the only ones in the place.

This intersection is right off the highway, next to movies, Starbucks and a huge regular burger place that had a fire 2 weeks ago. So the place (should be) full of people;

but it's a dead zone!

Not even 2 cars through the drive thru - in the last 15 minutes. I'm looking at the size of my BK King and its pathetic (do they REALLY think we don't notice the reduction)! The only thing I like, is the refill on sweet tea and the Hershey pie (that you can get across the street at Target - for 50 cents cheaper).

UNREAL!

[Thirties Child]

52. I haven't eaten at Burger King in at least 40 years

and call the stomach ache from a greasy hamburger a "Burger King stomach ache". Still, I hate to see Romney making money off of anything.

[laserhaas]

54. I (use to) love Whoppers; but not no more

And (as noted above in my comments)

Eating there today ( though someone else paid )

Was a burden.

The only decent thing was the drink n Hershey pue

Both of which BK didnt make