By Saabira Chaudhuri
Burger King Worldwide Inc. (BKW) Chief Executive Bernardo Hees
will leave to take the helm of H.J. Heinz Co. (HNZ) once the
acquisition of the ketchup maker by Berkshire Hathaway Inc. (BRKA,
BRKB) and private-equity firm 3G Capital is complete.
Warren Buffett's Berkshire Hathaway and 3G--which is also the
controlling shareholder of the hamburger giant--agreed in February
to buy Heinz in a $23 billion deal, one of the largest-ever
acquisitions in the food industry. 3G took Burger King private a
few years ago and currently has about a 70% stake in the public
company.
The 43-year-old Mr. Hees has been Burger King's CEO since
September 2010. Prior to joining Burger King, he was CEO was Latin
American railroad and logistics company America Latina
Logistica.
"Bernardo is a proven executive with an unparalleled track
record of delivering results," Alex Behring, managing partner at 3G
Capital said. "His combination of experience, leadership skills and
broad understanding of the food industry make him the ideal leader
to drive the next chapter in Heinz's storied history."
Mr. Hees will replace current Heinz CEO William Johnson, who
will work with him to ensure a smooth transition. Mr. Johnson will
remain as CEO of Heinz until the transaction is complete. 3G
Capital and Berkshire Hathaway said they expect to discuss Mr.
Johnson's interest in a continuing role with the company
post-closure following the shareholder meeting on April 30.
Burger King, in turn, said Chief Financial Officer Daniel
Schwartz has been promoted to chief operating officer and will
become its new CEO July 1.
Also Thursday, Burger King said it expects per-share earnings
for its first quarter slightly above Street views, although the
hamburger chain expects same-store sales to decline.
The company expects adjusted per-share earning of about 17
cents, a penny above the view of analysts polled by Thomson
Reuters.
Burger King expects global same-store sales to fall 1.5% for the
quarter, which it said is reflective of a more challenging
environment and the impact of leap day. It expects U.S. and Canada
same-store sales to drop 3%, due to tougher prior-year comparisons,
a challenging macroeconomic environment and heightened competitive
activity.
Burger King's board also approved a 20% increase to its cash
dividend to six cents a share, and also authorized the repurchase
of up to $200 million under its share buyback program.
Shares of Burger King closed Wednesday at $18.46, while those of
Heinz closed at $72.30. Both stocks were inactive in recent
premarket trading.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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