AC managing director and head for corporate strategy Rufino Luis T. Manotok said the company’s main focus is to revitalize the operations of Burger King and make it profitable to attract more investors.
"It’s very difficult to sell right now especially with the current market conditions. We’re rethinking our business models. We’re hoping that with much compact stores now, Burger King will be profitable," Manotok said.
"Now, we are seeing positive trends like average daily sales are increasing, our cash and revenue generation have also increased because of increased prices.
Burger King is not going to be there for the long-term but when the economy gets better I’m sure we’ll be able to sell it," he added.
The company has closed down its Burger King stores in Ortigas, Katipunan and Libis as part of the plan to limit the number of outlets to those that are only making money.
Manotok said a delay in the disposal of Burger King would not have any impact on the group’s bottom line as AC has already booked provisions for probable losses on its investments in the fastfood chain.
The sale of Burger King and other non-core businesses is part of AC’s continued efforts to focus on key businesses and unlock the value of the company. – Zinnia dela Peña
AC holds a 49.5 percent interest in Philking, the local franchise holder of Burger King while US-based RYLLC controls a 45 percent stake. The remaining 5.5-percent stake is owned by ELRO Commercial and Industrial Corp. of businessman Francisco Elizalde.