Analysts Suggest Diageo Will Spin Off Burger King Restaurant Chain.

Publication: The Miami Herald (Miami, Florida) (via Knight-Ridder/Tribune Business News)

Bookmark this article Print this article Link to this article Email this article Digg It! Add to del.icio.us RSS

COPYRIGHT 2000 The Miami Herald

Byline: Elaine Walker

Apr. 25--Burger King franchisees aren't the only ones who think it would be a good idea to spin off the fast-food chain from its British parent company.

Though parent company Diageo Plc. has repeatedly denied it is contemplating such a move, analysts who follow the conglomerate have been suggesting for months that it's time to break up its four unrelated businesses. They say it's the best way to rejuvenate its sagging stock price.

In addition to Burger King, Diageo owns Guinness beer, Pillsbury Foods and a spirits division whose brands include Johnnie Walker whiskey, Gordon's gin and Smirnoff vodka. Analysts say there is little synergy among the diverse group of brands, which run the gamut from Green Giant frozen meals to Haagen-Dazs ice cream and Baileys Irish Cream liqueur.

"Trying to run four businesses and get them all firing on all four cylinders at once is very difficult," said Simon Hales, an analyst with HSBC...

Read the full article for free courtesy of your local library.