Burger King's whopper Q2 results lead KDP to change recommendation

KDP Invesment Advisors said in a research note on Friday that it is changing its recommendation from 'hold' to 'buy' on Burger King's 9.875% 2018 senior notes and on its 2016 term loan B. 

The change in recommendation follows Burger King's 'much better' Q2 results, says KDP, with Latin American, Asian, and European markets performing well. While north American comparable store sales lagged, KDP says it expects this market to perform somewhat better in future.

KDP also points to management's plans to cut $85-$110 million in costs over two years, an aim that has in fact being achieved within 12 month, an 'impressive' achievement in KDP's eyes.