DISTRESSED DAILY: Burger King Franchisee GPS Faces Sales Drop

Burger King franchisee GPS Hospitality Holding Company has been struggling with declining sales and shrinking margins as it confronts higher wages and input costs.

GPS operates 475 restaurants, most of which are Burger Kings, as well as Popeyes and Pizza Hut locations. Although the pandemic largely benefitted fast-food restaurants, Burger King’s sales have remained flat or negative since early 2020, Fitch Ratings analysts Lyle Margolis and Timothy Lee wrote in a note Tuesday. GPS’s Burger King locations have lagged behind the chain as a whole due to staffing and weather-related problems, they said.

Burger King’s parent company Restaurant Brands International ...