Industry News | November 19, 2001

Sydran Restructures With Help from Burger King Corp.

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Sydran, the third largest franchise operator of Burger King restaurants, today announced it completed a financial restructuring with participation from Burger King Corporation. The restructuring will allow Sydran to meet its financial obligations and upgrade its Burger King restaurants. Sydran operates 264 Burger King restaurants throughout the United States.

Under the agreement, Burger King Corp. will loan Sydran funds to invest in their restaurants with such initiatives as new drive-thru menu boards and the new "Phase I Kitchen" currently being installed in Burger King restaurants across the country.

Additionally, Sydran has sold 39 Chili's restaurants to Brinker International and will use the proceeds to pay down existing loans.

"We are delighted with this agreement," said Matthew Schoenberg, president of Sydran, "and we thank the new management team at Burger King Corporation for working with us to allow us to invest in our business. We are proud to be Burger King franchisees and we are excited about the direction John Dasburg and the new management team are taking the brand."

"We are making this investment because we have confidence that the capital investments we are asking our franchisees to make in their restaurants will enhance the business model of the Burger King brand well into the future," said Ben Hirst, executive vice president and general counsel, Burger King Corp. "We also have confidence in the Sydran team to operate quality Burger King restaurants."

The restructuring was led by JPMorgan, the investment banking arm of JPMorgan Chase & Co.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.