In this episode of the Capital Allocators podcast, hosts conversation with Alex Behring and Daniel Schwartz from 3G Capital, where they delve into their distinctive private equity strategy and the remarkable success of their Burger King acquisition. The episode kicks off with an introduction and details about a year-end raffle for listeners who complete a survey. The main discussion explores 3G's background and their "owner-operator" model, which prioritizes operational efficiency through practices like zero-based budgeting. They share insights on how they sourced and executed the Burger King deal, as well as the operational enhancements that followed, leading to further acquisitions of Tim Hortons, Popeyes, and Firehouse Subs. The podcast wraps up with reflections on their investment philosophy, key takeaways, and plans for the future. Notably, 3G turned a $1 billion investment in Burger King into an astounding $28 billion in value, yielding annual dividends that surpass 70% of the initial investment. This engaging discussion underscores the significance of a long-term vision, operational excellence, and cultivating a strong team to achieve outstanding returns.
