Burger King reports 'excellent finish' to year

Burger King reports 'excellent finish' to year

- Company launches largest menu update in its history. - U.S./Canada region driven by new menu items and "compelling" promotions. - Ru

BURGER King Worldwide Inc. has reported "an excellent finish to a critical year" for its fourth quarter and full year in 2012, citing increasing comparable restaurant sales, net new restaurants, refranchising and reimaging.

For 2012, Burger King reported 3.2% growth in comparable sales, 3.9% growth in restaurants to 12,997 stores around the world, refranchising sufficient to bring the system to approximately 97% franchised and reimaging sufficient to give approximately 20% of units in the U.S./Canada region a modern image.

In addition, Burger King noted that it launched the largest menu update in the U.S. and Canada "in the history of the brand."

The company's results are shown in the Table.

For its U.S./Canada region, Burger King said results were due to menu additions such as the Chicken Parmesan sandwich and sweet potato curly fries and to "compelling" limited-time promotions, all of which helped drive comparable sales and traffic.

For its Latin America/Caribbean region, the company said results were due to new value initiatives in Brazil and Mexico and "strong" restaurant development in Brazil, Central America and Mexico.

For its Europe/Middle East/Africa region, Burger King said results were due to Chili Cheese promotions in the U.K., "King-of-the-Month" promotions in Germany and performance in the company's expanding market in Russia. Performance weakened in southern Europe, especially in Spain, because of the decelerating economy.

Restaurant development was good in Russia, the Middle East and Turkey.

For its Asia Pacific region, the company said results reflected improved performances in Australia and South Korea, with good restaurant development in China, Japan, Indonesia and Vietnam.

Burger King additionally announced that its board of directors has authorized a cash dividend of 5 cents per share on the company's common stock, payable March 15 to holders of record on Feb. 28. The payment represents a 25% increase in the company's dividend rate.

Burger King, headquartered in Miami, Fla., is the second-largest quick-service restaurant system by number of restaurants and the third largest by sales in the U.S. It serves more than 11 million consumers in 86 countries and territories every day.

 

Burger King earnings and sales (million $)*

 

-Fourth quarter-

-Full year-

 

2012

2011

2012

2011

Sales

 

 

 

 

Company restaurants

182.3

404.4

1,169.0

1,638.7

Franchise restaurants

222.2

176.2

797.3

697.0

Total restaurants

404.5

580.6

1,966.3

2,335.7

Earnings

48.6

25.0

117.7

88.1

Earnings per share (cents)

14

7

33

25

*For the quarters ended Dec. 31, 2012, and Dec. 31, 2011.

Source: Burger King Worldwide Inc.

 

Volume:85 Issue:09

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