Burger King income jumps in 2Q
Aug. 1, 2012
by Meat&Poultry Staff
MIAMI – Burger King Worldwide Inc. recorded net income of 59.6 percent to $48.2 million in the second quarter ended June 30 compared to $30.2 million in the comparable year-ago quarter.
Total revenues for the company declined 9.2 percent to $540.8 million in the second quarter compared to $595.4 million in 2011. Adjusted EBITDA was $172 million, and adjusted diluted earnings per share were $0.17 in the second quarter compared to $0.13 in the comparable quarter in 2011.
“I am pleased with the progress made this quarter, with system-wide comparable sales up 4.4 percent and adjusted EBITDA up 19 percent year over year on an organic basis,” said Bernardo Hees, chief executive officer. “In the US and Canada, our focus on menu, restaurant image, operations and marketing communication is beginning to generate tangible results. Internationally, we are laying the foundation for accelerated development worldwide through the formation of partnerships in Russia and China. We are excited to have listed on the NYSE this quarter and believe BKW is well positioned for long-term growth.”
Burger King focused on international growth in the second quarter by entering joint ventures with Russia and China. In Russia, the joint venture will see several hundred restaurants open over the next few years. In China, the joint venture will produce 1,000 restaurants over the next five to seven years. The company said the deal represents the largest multi-unit development agreement in the brand’s history.
The US and Canada segments recorded system-wide comparable sales growth of 4.4 percent, spurred by strong sales and product volumes the company's largest menu expansion in its history. This includes smoothies, wraps and frappes introduced in April, Burger King said. Latin America and the Caribbean (LAC) reported comparable sales growth of 10.5 percent on strong performance in Brazil and Mexico. EMEA delivered comparable sales growth of 3.3 percent, driven by successful promotions in Germany, and APAC had comparable sales growth of 2.1 percent primarily on the impact of an extra trading week in the quarter in Australia.
Also, Burger King began trading on the New York Stock Exchange June 20 under “BKW”.