Burger King’s EPS grows 49%
Despite a challenging environment.
According to Burger King Worldwide first-quarter release report, dated April 26, 2013, the Adjusted Diluted EPS increased 49% to $0.17, despite a competitive and challenging QSR environment. The Adjusted EBITDA increased 4.5% on an organic basis to $144.3 million, while Adjusted EBITDA margin also increased 1,890 bps to 44.0%.
The company also announced that their global comparable sales growth dropped 1.4% due to the impact of leap day and negative comparables sales growth in the U.S. and Canada and Latin America and the Carribean (“LAC”), although it was partially offset by positive growth in Europe, Middle East and Africa, and Asia Pacific.
On the other hand, Burger King’s system-wide sales increased 1.1% in constant currency. Positive results in Australia and Korea drove the Asia Pacific (APAC) comparable sales to rise by 2.7%. Strength in Australia increased due to successful value promotions such as “Shake and Win” and “Penny Pinchers,” while Korea’s new value programs resulted in the brand's positive comparable sales growth.
Bernardo Hees, Chief Executive Officer for Burger King Worldwide, commented, “In addition, we announced the increase of our dividend by 20% and initiated a $200 million share repurchase program, demonstrating our positive outlook for the long-term prospects of the business and commitment to returning cash to shareholders. While comparable sales growth was not up to our expectations, we made progress toward achieving our target business model and remain committed to executing our Four Pillar strategy in the U.S. and Canada and driving net restaurant growth internationally.”
