In order to strengthen its global footprint, the famous hamburger restaurant chain Burger King Worldwide (BKW - Analyst Report) recently inked a joint venture deal with restaurant operator Groupe Olivier Bertrand in France. The financial terms of the deal were not disclosed.
Additionally, France-based asset management firm, Naxicap Partners, will hold a minority interest in the agreement.
Per the deal, Groupe Olivier Bertrand will act as Burger King’s long-term master franchisee and developer of 250 restaurants across France. Following the agreement, Groupe Olivier Bertrand will also have Burger King’s sub-franchise rights in the country. The restaurateur expects the joint venture to create nearly 1,200 jobs in the country in the first year of restaurant openings.
Owned by Bertrand Holding Company, Groupe Olivier Bertrand boasts a solid presence in the restaurant and hotel industry in France. It operates more than 250 restaurants across the country. The franchisee’s strong operational abilities and sound knowledge makes it a perfect fit for the partnership.
After leaving the French market in 1997, Burger King returned in 2012. Since its reopening, the restaurateur has witnessed solid growth potential in the country which is expected to be the reason behind this expansion plan. Further, the country’s consumers also have an inclination toward American food products. World’s biggest U.S.-based burger chain McDonald's Corp. (MCD - Analyst Report) has successfully established its presence in the country.
Burger King projects to achieve 20% market share in France which holds the crown of Europe’s largest quick-service restaurant market. The company, famous for its Whooper sandwich, also expects to become the market leader in the hamburger category in the country.
Burger King remains committed to accelerate international expansion in high-growth potential markets. Last week, the company signed a joint venture agreement with the private equity and real estate firm — Everstone Group — to step into the lucrative Indian market.
In the recent times, the restaurateur has also initiated ventures into key markets like Russia, China, Mexico, France, Central America, South Africa, the Nordic countries, Singapore, Malaysia, Korea and Vietnam to boost its business.
Burger King holds a Zacks Rank #2 (Buy). Investors interested in the restaurant industry may consider stocks like Buffalo Wild Wings Inc. (BWLD - Analyst Report) and Darden Restaurants, Inc. (DRI - Analyst Report). While Buffalo Wild Wings carries a Zacks Rank #1 (Strong Buy), Darden Restaurants holds a Zacks Rank #2.