Daniel Schwartz, co-managing partner at 3G Capital and former CEO of Burger King and Restaurant Brands International, reflects on key management lessons.
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“Don't be afraid to make a big bet on someone if you really believe in that person. Even if maybe that person isn't a hundred percent ready at the time, don't be afraid. Make the bet.”
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More from Daniel Schwartz
Insight
Schwartz: Erasing the line between management and ownership drives entrepreneurial alignment
“We don't like to think of that being delineation between ownership and management. And like the people who are running the company are the people who own the company. And I think it results in them being more entrepreneurial. It results in them bringing this o…”
Daniel SchwartzMay 6, 2024▶ 18:32Classic Deal - Burger King by 3G Capital (EP.384)
AssertionPartly supported
Schwartz: Burger King Yielded ~25% Free Cash Flow on Equity in Year One
“Yeah, it's like a 25% free cash flow yield within the first year or so on our equity.”
Daniel SchwartzMay 6, 2024▶ 35:12Classic Deal - Burger King by 3G Capital (EP.384)
Disclosure
Schwartz: Burger King recruited MBAs with cold emails and spot offers
“I would make regular trips to business schools, get the resume books in advance, and cold email folks who I thought had impressive resumes, and if you get an email from, say, Cold email CEO or CFO of this company. I'm on campus, and do you want to meet? I got …”
Daniel SchwartzMay 6, 2024▶ 42:04Classic Deal - Burger King by 3G Capital (EP.384)
AssertionPartly supported
Schwartz: Tim Hortons EBITDA grew 80% and cash flow doubled under 3G
“Which in hindsight, it's like, oh, it was really obvious that Tim Horton's EBITDA is now 80% higher or whatever it is, and the cash flow doubled. We've expanded it globally.”
Daniel SchwartzMay 6, 2024▶ 51:04Classic Deal - Burger King by 3G Capital (EP.384)
Insight
Schwartz: Multi-brand restaurant platforms must keep separate brand identities and real estate
“While there would be back of the house synergies in terms of finance, procurement, supply chain, legal, we actually felt it was very important for the brands to maintain their own distinct brand identity and brand management. Part of that is real estate develo…”
Daniel SchwartzMay 6, 2024▶ 55:52Classic Deal - Burger King by 3G Capital (EP.384)
Disclosure
Schwartz: 3G Capital Only Acquires One Business Every Few Years
“We'll only buy one business every few years, but we study a lot of them.”
Daniel SchwartzMay 6, 2024▶ 25:37Classic Deal - Burger King by 3G Capital (EP.384)
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