Burger King: The facts about the second – Part 1
March 3rd, 2010 | 
Author: Burger King is the second largest fast food chain in the world, following behind the mighty McDonalds. Burger King was founded in a Miami, Florida, suburb in 1954 by James McLamore and David Edgerton, following a visit to the original McDonalds in San Bernadino, California. Sensing that Dick and Mac McDonald were on to something big, the partners created their own version of the fast food genre and named it Burger King. By 1959 they had five stores in the Miami area; by 1967 their company had grown to 274 restaurants in the United States.
The Pillsbury Company bought Burger King and its parent company, Burger King Corporation, in 1967. At that time, Burger King had only one restaurant outside the continental United States, in San Juan, Puerto Rico. The purchase by Pillsbury allowed the company to go international: Canada in 1969, Oceania in 1971, Europe in 1975, and Central and South America in the late 1970’s. Because the name Burger King was already a trademark in Australia, the franchises there took the name of Hungry Jack’s, after a popular Pillsbury pancake mix. This was the only time they were forced to changed the name.
In the 1980’s, Burger King entered into a contract with the Army and Air Force Exchange Service to place franchises on bases around the world. Today, almost every base has a Burger King restaurant.
In 1989, Pillsbury sold off its restaurant holdings to Grand Metropolitan PLC, a British alcoholic beverage manufacturer and distributer. Under this stewardship Burger King acquired many locations of the Wimpy’s franchise in England, giving Burger King a larger market share in the country. In 1997, Grand Met merged its holdings with Guinness to form the company Diageo.
Diageo sold the company to a group of investors in 2001, for $1.5 billion. By this time Burger King’s market share and revenues were declining, some under performing stores had been closed, and some franchises were in bankruptcy. The new owners reorganized and brought new life to the company. They also decided to take their privately owned company public. The first trades were on the New York Stock Exchange on May 18, 2006, with the ticker symbol BKC. The initial IPO generated $425 million, the largest IPO for a US based restaurant on record.
Throughout the years, Burger King has also had its share of problems. After a good advertising campaign in the 1970’s, when the original Magical Burger King was introduced, their advertising became less focused and had no catchy phrase or mascot. In 2003, they brought in the Miami advertising firm of Crispin Porter + Bogusky to revitalize their image. The firm brought back the old Magical Burger King, which is still being used today.
Burger King has also been the target of PETA over the treatment of the animals it uses in preparation of its ingredients. Burger King has agreed to change its suppliers.
Many have also faulted Burger Kin for its super-sized meals, citing that they contain too many calories and too much trans fat. To help counter this image, Burger King has joined The Council of Better Business Bureaus Children’s Food and Beverage Advertising Initiative, a self regulating program designed to offer healthier eating tips and better menu choices to children.
The company also has several charitable organizations it supports, including the Have It Your Way Foundation that focuses on alleviating hunger and disease and promoting education. The McLamore Foundation provides scholarships to students in the US and its territories. Burger King franchises individually also partner with various charitable organizations in their individual cities.
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