Sky News reports that Burger King UK, which is backed by private equity firm Bridgepoint, is seeking an additional £40m of borrowing capacity to help deliver its business plan.
The refinance includes £110m of existing debt and is to be discussed with prospective lenders in the coming days.
Burger King UK secured £35m in new investment from Bridgepoint in October 2023.
At the time, the company confirmed plans to open more than 60 restaurants over the next two years.
In its most recent financial accounts, the business grew total revenues by 30% to £381.8m in 2023.
Like-for-like sales grew by 3%, while operating profit of £13.4m was driven by revenue growth from the existing estate and new restaurants.
Burger King UK owns more than 50% of the brand’s c.600 outlets across the UK. The remainder are franchised restaurants.
Sources close to the company told Sky News it is outperforming the wider QSR market in terms of like-for-like sales growth.
The Gourmet Kings range has driven sales growth in higher-margin products, while its value platform has grown among price-conscious customers, the sources said.
Investment bank DC Advisory is worked with Bridgepoint and Burger King UK on the refinancing process.