Burger King full-year earnings improve
March 15, 2012
by Meat&Poultry Staff
MIAMI – Net income at Burger King Holdings, Inc. was $107.0 million for fiscal 2011 compared to $59.6 million for the year-ago period. Taking into account the company's acquisition in 2010, adjusted net income for fiscal 2011 was 197.4 million, compared to 161.7 million in 2010.
Adjusted EBITDA for the year increased 29 percent to $585.0 million, the company said. System-wide comparable sales declined .5 percent due to negative results in North America and Asia Pacific. But this was largely offset by strong results in Latin America and Caribbean (LAC) and Europe, Middle East and Africa (EMEA), according to the company.
“2011 was a pivotal year for the Burger King band, globally," said Daniel Schwartz, chief financial officer. "In just one year following the acquisition, we refocused our business priorities in North America, accelerated our international growth and established a corporate culture of fiscal responsibility and ownership.
“These efforts enabled us to deliver 29 percent year over year growth in adjusted EBITDA to $585.0 million. Our positive results were achieved by delivering strong results in our international businesses coupled with corporate cost savings measures,” he added.
The company added 261 restaurants in fiscal 2011 compared to 173 restaurants in the year-ago period.
In the fourth quarter of 2011, the company's net income was $29.4 million, compared to a loss of $93.9 million for the prior year period. Adjusted net income for the fourth quarter was $54.5 million, compared to $19.2 million for the prior year period despite increased interest costs due to strong results in LAC and EMEA and continued benefits from the company’s global restructuring and zero-based budgeting (ZBB) program.
Adjusted EBITDA increased by 35 percent or $40.1 million in the fourth quarter on strong results in LAC and EMEA and continued benefits from the company’s global restructuring and ZBB program.
"The company believes that it is well positioned to capitalize on its positive momentum and will remain focused on its core business priorities to strengthen its business in North America," the company said in a statement. "Additionally, the company remains dedicated to aggressively expanding its global footprint through large franchisee development in key international markets."