Bertrand Franchise (Burger King France) : Cash is “King” ?

The restaurant sector in France is going through a rough patch, hit hard by declining purchasing power and political uncertainty that is undermining household confidence. And despite the resilience of its Burger King brand, Bertrand Franchise's earnings fell short of the outlook envisaged when the BERFRA bonds were issued in May 2024, with the decline in H1 25 EBITDA leading to a weakening of its already stretched credit metrics. Even so, the Group's franchise development model means it consumes little cash, while management has been prudent in structuring its balance sheet with a confortable liquidity cushion (~€190 million in cash at the end of June, plus the RCF renegotiated in 2024, which could be drawn down for at least €66m), with no short-term financial maturities, which should enable it to weather these challenging times.