Closing of the deal is expected in the fourth quarter, and Texas Pacific had been considered a front-runner for Burger King, which commanded a reasonable price, say most analysts. In fiscal 2001, Burger King's North American same-store sales had declined 4%, compared with the prior year.
Analysts also say the owner change will be good for Burger King, which had been a bit of an orphan in Diageo's portfolio. Texas Pacific's consortium reportedly has asked John Dasburg, BK's CEO and president of almost two years, and his senior management team, to remain in place.