Burger King 3Q net income down, revenues up
Nov. 9, 2011
by Meat&Poultry Staff
MIAMI – Burger King Holdings Inc. reported for the third quarter of 2011, net income of $48.1 million compared to $63.4 million for the same quarter in the prior year, primarily due to a significant increase in interest expense as a result of the company’s debt structure.
Revenues totaled $608.1 million compared to $600.0 million in the same quarter of 2010, with all operating segments contributing positive results. Revenue increased due to comparable sales growth of 1.6 percent and the opening of 189 net restaurants over the past 12 months, partially offset by the net refranchising of 49 company restaurants over the same period.
System-wide comparable sales grew by 1.6 percent, with international performance driving the positive results. In Latin America comparable sales grew by 10.5 percent and in Europe, Middle East, Africa and Asia Pacific by 3.0 percent. In the US and Canada, comparable sales were relatively flat.
Adjusted EBITDA of $161.0 million was positively impacted by strong international results, improved performance in the US and continued benefits from the company’s previously disclosed global restructuring and zero-based budgeting (ZBB) program.
“We are pleased with our global comparable sales performance and continued growth in adjusted EBITDA,” said Daniel Schwartz, chief financial officer. “This quarter marks our strongest growth in adjusted EBITDA since the acquisition in October 2010. In the US, we remain focused on enhancing our menu, improving our restaurant image, streamlining operations and revamping our marketing communications process to appeal to a broader consumer base and drive profitable growth.”
Burger King is the second-largest fast-food hamburger chain in the world. It operates in approximately 12,400 locations serving over 11 million guests daily in 79 countries and territories worldwide.