NEW YORK (CNN/Money) -
Burger King is searching for a new CEO less than two years into the tenure of its current boss, according to published reports.
The Wall Street Journal reported Wednesday that the company is looking to replace Brad Blum, its eighth chief executive in 15 years, only 18 months after he took the job at the closely-held company. The search for the new CEO was first reported by trade publication Advertising Age.
The newspaper said candidates to replace Blum include Chief Financial Officer John Chidsey, who joined the company four months ago and was given the additional title of president of Burger King North America earlier this month. Outside candidates include Coca-Cola Co. President Steven Heyer, who lost a competition for the CEO job at the soft-drink maker and has announced plans to leave Coke later this year, and Paul Clayton, CEO of Jamba Juice, who was president of Burger King North America from 1997 to 1999.
It said Heyer and Clayton declined to comment through spokespersons at their current companies, and Burger King declined to comment as well.
The paper said that Burger King has struggled financially in recent years, with at least 20 percent of its roughly 7,900 restaurants losing money, and at least three of its 10 largest franchisees filing for bankruptcy protection in recent years. The paper said it is expected to lose its No. 2 ranking after McDonald's to Wendy's International Inc. (WEN: Research, Estimates)
Industry analyst Allan Hickok, at Hickok McMillan Strategic Advisors, told the paper that Blum did not get along with franchisees, who own the majority of Burger King's system. He said there was a shouting match last month at a franchisee meeting.
Diageo PLC (DEO: Research, Estimates) in late 2002 sold the chain to investment firms Texas Pacific Group, Bain Capital and Goldman Sachs Partners. The paper said Bain started the search for the new CEO six weeks ago.
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