Burger King Crowns Turnaround Expert CEO

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Burger King Crowns Turnaround Expert CEO  =

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Tuesday July 13, 10:58 AM EDT =


By Deborah Cohen

CHICAGO (Reuters) - Burger King Corp., the No. 2 U.S. hamburger chain, on=
 Tuesday named turnaround specialist Greg Brenneman as chief executive, r=
eplacing Brad Blum, who left earlier this month because of strategic diff=
erences with the company's directors.

Brenneman, 42, is currently chairman and CEO of private equity firm TurnW=
orks Inc. and is the former chief financial officer of Continental Airlin=
es (CAL).

He assumes his new post on Aug. 1, becoming Burger King's ninth CEO in 15=
 years. Analysts said Brenneman needs to move swiftly to win support from=
 Burger King's operator base, which has seen three of its 10 biggest fran=
chisees file for bankruptcy protection in recent years due to heavy debt =
and overexpansion.

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"It looks like his background and history have been well affiliated with =
turnarounds," said Harris Nesbitt analyst Matthew DiFrisco. "He needs to =
not only turn around the financial operations, but also has to gain the t=
rust of the franchisees, which is the ongoing struggle."

DiFrisco said he does not expect to see growth from Burger King in the ne=
xt six to 12 months, as the new CEO assesses the situation. There may eve=
n be a string of store closings and other strategic moves to stem weaknes=
s, he said.

Burger King, which has about 7,700 restaurants in the United States, most=
 of which are franchised, is owned by a private equity group consisting o=
f Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners. T=
he company trails larger rival McDonald's Corp. (MCD), which has about 13=
,000 U.S. stores.

Shortly after Blum's arrival, he repositioned Burger King's flame-broiled=
 hamburgers as "fire-grilled" to keep pace with health-oriented marketing=
 by rivals such as McDonald's and Wendy's International Inc. (WEN), which=
 could overtake Burger King in the No. 2 spot.

Burger King posted its biggest same-store sales gain in four and half yea=
rs in May.

Earlier this year, Burger King hired ad agency Crispin Porter + Bogusky, =
which is known for its quirky campaigns, after dumping WPP Group Plc's (W=
PP) Young & Rubicam -- a move that has been well-received by both consume=
rs and advertising experts. (With reporting by Emily Kaiser in Chicago) =



=A92004 Reuters Limited. =


Roger
EWROPS

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