> Warren Buffett Blog: Buffett adds to investment in Burger King, Tim Hortons

Wednesday, December 17, 2014

Buffett adds to investment in Burger King, Tim Hortons

Berkshire Hathaway used a warrant to buy 8.4 million shares of Restaurant Brands International, the parent company for the Burger King and Tim Hortons fast-food chains.

Berkshire paid a penny a share to take a stake of 4.2 percent of the outstanding common stock of Restaurant Brands, the Oakville, Ontario-based fast-food company said today in a regulatory filing. The holding is worth more than $300 million based on today’s closing price in New York.

Buffett got the warrant as part of his agreement to help finance the merger, which was announced in August and completed last week. The contract allowed Berkshire to buy about 1.75 percent of the fully diluted common shares of Restaurant Brands. In addition to the 202 million shares outstanding, the company said today that there are about 265 million units of a partnership that can be exchanged for common stock. 

Buffett’s company also holds $3 billion of preferred shares in Burger King parent company Restaurant Brands and earns 9 percent annual interest on that investment.