Burger King Holdings Inc. announced Wednesday that it would take an
equity stake in its franchisee in Taiwan to expand the chain's presence on the East Asian island. DaChan Great Wall Group has been a Burger King franchisee since 1989 and operates 33 stores in Taiwan. According to the
Taipei Times, the BK investment will allow DaChan to triple that number. The new venture will be 30% owned by Burger King subsidiary BK Asiapac Pte. Ltd.
Burger King and rival McDonald's Corp. have seen sales rise as the economy sinks, with consumers turning to the fast-food chains for low-cost meals. McDonald's, which operates more than 300 restaurants in Taiwan, posted an 11% gain in
third-quarter profit on Wednesday, earning $1.19 billion and beating Wall Street expectations. McDonald's chief executive Jim Skinner said he was optimistic about the remainder of 2008, calling the business recession-proof.
Burger King executives remain more cautious.
Reuters reported Wednesday that the chain had concerns that with credit remaining tight, franchisees might have trouble getting loans. Burger King announces earnings on Oct. 31.
- Suzanne Stevens
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Juergen Lasowski
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I agree. Food chains such as BK and McDonald's won't be that greatly affected. Adding promotions would give more reasons for customers to patronize their product.