Burger King Pulls Its Punches

Burger King (BKC) missed the point in its latest earnings release. They have over 12,000 restaurants with a near 90% franchise rate. Yet in the press release they report 249 net new restaurants, 79 refranchised restaurants, 54 re-imaged restaurants. These are pathetically small numbers. At the same time they report strong cash and balance sheets. The question becomes are they pulling their punches or do they really not have the capital and cash flow to do the job properly.

Disclosure: No position in any stocks mentioned in this post.