Belgium: Burger King vs. Belgium: King Philippe Not Happy About Fast Food Ad Campaign - by Lucy Westcott

Who is the real king of Belgium

It's just typical. You wait your whole life to be king, only to be upstaged by an American fast food chain known for, among other things, cramming macaroni and cheese inside Cheetos-crusted breading.

As far as monarchies go, Belgium’s current royal family keeps a fairly low profile. That was until Burger King launched an interactive advertising campaign ahead of the opening of its first Belgium location, which lets people vote for the country’s “real” king.

If you visit WhoIsTheKing.be, you’re greeted with the words: "Two Kings. One crown. Who will rule? Vote now... " Burger King lets you vote for either, well, Burger King or Belgium’s King Philippe. The website then invites you to return on June 19, when the true “king” of Belgium will be coronated.

Voting for for 57-year-old Philippe isn't easy. After casting your ballot, you’re asked several times if you’re sure and reminded that Philippe “won’t cook you fries.” (Maybe he will?) The chain even has posters to download, stating: “Vote With Your Stomach;” “Belgian People, Choose A King Who Will Make You Fries;” and “Philippe, Another King Arrives in Belgium.”

Perhaps the ad campaign hit a bit too close to home: In 1950, Belgium held a referendum over whether to abolish the monarchy and let Leopold III, Philippe’s grandfather, resume royal duties after World War II.

It's safe to say that King Philippe is not amused. Representatives for the king asked Burger King about the campaign, Reuters reports.

"We told them that we were not happy with them using an image of the king in their campaign," Pierre-Emmanuel De Bauw, palace spokesman, told Reuters. De Bauw added that the Philippe’s image can’t be used for commerce. He appears in the Burger King campaign as a cartoon, and the royal family was not asked if Philippe’s image could be used.

Burger Brands Belgium spokeswoman Shanna Van den Broeck said the company is “deliberating on how to proceed” with the campaign.

Read more: Burger King vs. Belgium: King Philippe Not Happy About Fast Food Ad Campaign

Multi - National Tax Evasion: Is Burger King’s move to Canada a raw deal for U.S. taxpayers?.- by Eileen Appelbaum

With tax inversions, by reincorporating overseas and turning the foreign subsidiary into the “parent” company, at least on paper, the company is free to use its offshore cash however it wants without having to pay U.S. corporate taxes on the money. Private equity companies have a history of domiciling portfolio companies that do most of their business in the U.S. in the Cayman Islands or other tax havens.

So it may not be surprising that it is Burger King BKW 3.16% , which was formerly private equity- owned and whose major shareholder is still the PE firm 3G Group, whose massive tax inversion deal breaks this mold. Most tax inversions involve a large U.S. multinational acquiring a small subsidiary, but Burger King and Tim Horton’s are both multi-billion dollar businesses with similar market capitalizations. Most tax inversions have been motivated by a desire to bring offshore profits back to the U.S., but Burger King doesn’t have much in the way of profits parked offshore.

Burger King executives have defended the deal by saying that plans to expand globally is what’s driving the deal rather than tax considerations, but tax experts are skeptical of this explanation. It seems the company just wants to pay lower taxes. In any case, if the deal is not met with customer resistance as Walgreen’s now-abandoned tax inversion plan was, it could lead other multinationals that directly serve consumers to renounce their U.S. citizenship to reduce their taxes.

This may be legal, but that doesn’t mean that it’s right. The corporate defense that companies need to do what’s best for their shareholders and take advantage of every loophole in the corporate tax code rings hollow when these companies employ an army of lobbyists to make sure that the tax code is riddled with loopholes.

Public outrage at the recent spate of tax inversions by high-profile multinationals that want to shift profits earned in the U.S. overseas to reduce their tax bill may finally overcome the clout of corporate interests and lead to action by Congress to limit the opportunities for engaging in this tax avoidance scheme. Treasury and the IRS are also considering measures to discourage tax inversions by making earnings ‘stripping’ illegal and eliminating some of the benefits of such deals.

Even before the Burger King deal was announced, the Congressional Joint Committee on Taxation estimated that the potential tax revenue the Treasury would lose to tax inversions over the next 10 years could amount to $19.5 billion. If not stopped soon, lost tax revenue from tax inversions may mount much higher. The country faces an urgent need to stop corporate inversions. This is one tax loophole that Congress should move quickly to close.

Read more: Is Burger King’s move to Canada a raw deal for U.S. taxpayers?

Fast Food: French mouths water with the return of Burger King to France

Burger King is making a return to France after a 15-year hiatus, in news that has set mouths watering in a country better known for its haute cuisine, fine wine and cheeses.

The US fast food chain’s imminent return after it quit the country in 1997, citing the brand’s poor commercial performance, has been the subject of intense and repeated rumours for years.

And the confirmation on Thursday that the iconic Whopper sandwich was on its way back immediately triggered an avalanche of enthusiasm on the Internet.

By lunchtime on Thursday the hashtag #BurgerKing was “trending” as second most popular on Twitter France.

Read more: French mouths water with the return of Burger King

Fast Food - What went wrong at Burger King - by Dan Mitchell

It's not yet clear what Burger King's new owner, the Brazilian-backed private equity firm 3G Capital, has in mind for the troubled No. 2 fast-food chain. But a total strategic revamp is in order.

Burger King (BKC), which went public four years ago after its previous private equity owners cashed out, has limped its way through the recession, losing sales and market share even as its far-better-managed rival, McDonald's (MCD, Fortune 500), has thrived. Thriving is what fast-food purveyors are supposed to do during a recession, when diners tend to trade down. But Burger King has stubbornly stuck to a losing strategy, falling further behind with each passing quarter. The result: A loss in share value over the two years up until Tuesday -- just before rumors of the buyout started to float -- of 36%. McDonald's shares over the same period rose 14%.

It will be interesting to see what the new Brazilian owners will make of Burger King's grandiose vision. Chidsey will step down as CEO, but will remain as a co-chairman along with Alex Behring, 3G's managing director. Supposedly they'll work together to find a new chief.
For more: What went wrong at Burger King - Sep. 3, 2010