Sell Burger King Shares Now: Analyst

MIAMI (TheStreet) -- As restaurant stocks soared Thursday on better-than-expected economic data and a $4 billion buyout of Burger King Holdings, the time for profit-taking and divesting Burger King shares, may now be upon us.

That's what Stifel Nicolaus analyst Steve West told TheStreet Thursday, though he kept his hold rating on Burger King(BKC) shares.

Thursday afternoon, Burger King's stock was surging 24.6% to $23.49 on nearly 40 times their average trading volume after the Whopper-and-fries maker announced it had accepted the acquisition offer from buyout fund 3G Capital.

>>Burger King Agrees to Buyout

West argued that now is the time to sell Burger King shares on the view that the stock is unlikely to go much higher.

Some arbitration shops may still make some money on the stock, potentially filing suits arguing for a higher-priced deal, but "I don't think any more upside will be material," he said.

>>Restaurant Stocks: Winners & Losers

3G will pay $24 in cash for each share of Burger King, a 45.9% premium to Burger King's closing price on Tuesday, before rumors of the buyout began circulating Wednesday morning. It will be the second time in eight years that Burger King has gone private.

>>Bankruptcy Watch: 20 Riskiest Restaurant Stocks

-- Written by Miriam Marcus Reimer in New York.

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