S&P flips Burger King France view to stable

S&P said it changed its outlook for Burger King France SAS to stable from negative and affirmed the B- issuer rating.

Burger King France plans to refinance its capital structure with a mix of senior secured notes and floating-rate notes amounting to €620 million maturing in 2026 and €235 million of payment in kind notes at the parent, BKF Midco, maturing in 2027.

“Having reached a critical size through the conversion of the Quick network, Burger King France is now expanding primarily through franchisees with a less capital expenditure-intensive business model, enabling increasing margins and positive free operating cash flow (FOCF),” S&P said in a press release.

The outlook reflects an expectation that Burger King France will boost its EBIDTA significantly by executing its expansion program, progressively reducing S&P Global Ratings' adjusted leverage toward 9x over the next 12 months and generating minimal but positive FOCF after lease payments in 2022, the agency said.

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