UPDATE: Morgan Stanley Upgrades Burger King Worldwide Inc
Glass sees the combination of Burger King and its recently acquired Tim Hortons firmly establishing Burger King as the fifth-largest market cap restaurant in the world. Glass expects $175 million in near-term synergies generated from the merger.
Glass believes that Burger King's majority shareholder, 3G Capital, is a major positive to creating shareholder value.
"3G's track record of creating platform companies and generating shareholder value has been strong and we think this new entity will likely continue to grow through acquisitions over time," Glass wrote Monday.
In addition to synergies, Glass sees a "significant" unit growth opportunity ahead as Burger King continues to expand its footprint internationally. With Tim Hortons added to the mix, the analyst expects a combined international growth by 200 basis points which "should be among the fastest international growers in restaurants."
Latest Ratings for BKW
|Dec 2014||RBC Capital||Upgrades||Sector Perform||Outperform|
|Dec 2014||Goldman Sachs||Initiates Coverage on||Buy|
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