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Burger King’s main UK operator Bridgestone is initiating talks with lenders for a significant refinancing, as the fast-food group plans to open 30 new restaurants this year, according to Sky News.
Almost eight years after acquiring the business, the private equity firm has committed £35m in new equity as part of Burger King UK’s business plan and is now seeking an additional £40m in refinancing.
Sky News has learnt that the deal which will also include £110m of existing debt will be discussed with prospective investors in the coming days.
Alongside opening 30 new restaurants, Bridgepoint also plans to remodel 50 of the existing estate.
People close to the company told Sky News that it was “outperforming” the wider Quick-Service Restaurant market in terms of like-for-like sales growth.
Additionally, they stated that Burger King’s Gourmet Kings range has “boosted sales” of higher-margin products, while its value platform has “gained popularity among price-conscious consumers”.
Burger King UK owns slightly more than half of the chain’s nearly 600 outlets in Britain, with the remainder operated by other franchisees.
DC Advisory is working with Bridgepoint and Burger King UK on the refinancing.
Bridgepoint and Burger King UK have been contacted for comment.
