Burger King turns profit in quarter
May 9, 2012
by Eric Schroeder
MIAMI — Improved results in all segments and decreased costs helped Burger King Holdings, Inc. return to profitability during the first quarter.
For the quarter ended March 31, the company had income of $25 million, which compared with a loss of $5.9 million during the same quarter of the previous year. Revenue for the quarter was $569.9 million, up 18 percent from $522 million during the same period of the previous year.
“We are off to a strong start in 2012 and are making terrific progress on the execution of our core global business strategies with system-wide comparable sales up 4.6 percent and adjusted EBITDA up 20 percent year-over-year,” said Daniel Schwartz, chief financial officer. “We are particularly pleased with our performance in North America, which delivered its best comparable sales performance in more than eight quarters. Our strong performance in key international markets underscores the significant potential of our global portfolio. We are excited to build on the quarter’s strong momentum as we continue to deliver on our strategic priorities.
“Looking forward, we remain focused on our core global business strategies, including refranchising our company-owned restaurants and expanding our global consumer base. In North America, we continue to execute on our four pillar strategy of marketing communications, menu, image and operations. At quarter end, we launched 13 new menu items to expand our menu offerings and rolled out a national advertising campaign to highlight both the quality and range of these offerings. Internationally, we remain dedicated to aggressively expanding our global footprint through franchisee development in key international markets. As we continue to execute on these strategies, we expect to grow adjusted EBITDA and free cash flow to provide for the long-term growth of the brand.”