Burger King Announces New CEO

Burger King today replaced CEO Greg Brenneman with new CEO John Chidsey (pictured) in a management shake-up that comes as the chain prepares for an initial public offering. Mr. Chidsey was president and CFO. He will work with the board until he returns to his private-equity firm, Turn Works Inc. in pursuit of business turnarounds.

In February Burger King declared a different direction:

"In the prospectus it filed with the Securities and Exchange Commission in February, the company said that "the success of our business to date has been, and our continuing success will be, dependent to a large degree on the continued services of our executive officers, including our chairman and chief executive officer, Greg Brenneman."

According to the The Wall Street Journal ($$ subscription), BK explained the change of its top ranked executive this way:

"Mr. Brenneman had intended to eventually pass the baton to Mr. Chidsey, and Mr. Brenneman said it made more sense to do that before the company started road shows and other activities for the company's initial public offering. He called the move "a very natural transition." Mr. Brenneman plans return to his private-equity firm, TurnWorks Inc., to pursue business turnarounds."

New CEO John Chidsey's skills are highly sought after. Three equity groups that acquired Burger King in late 2002 were seeking a replacement for CEO Brad Blum, with Chidsey a candidate for the top post.

The new CEO needs to not only launch the initial public offering of Burger King but also needs to build its franchisees’ confidence in a turnaround. Development of new menu items, more efficiently run units and stronger marketing efforts that lure in more customers will be the challenge.

Source: Wall Street Journal,