Burger King 2009 Annual Report Download - page 21

Table of Contents
Peter Robinson has served as our President, EMEA since October 2006. From 2003 through 2006, Mr. Robinson served as Senior
Vice President and President, Pillsbury USA Division. Mr. Robinson will be leaving the Company on October 1, 2009.
Kevin Higgins has served as our President, EMEA since August 2009. From April 2004 through February 2009, he served as
General Manager, Yum! Brands Europe and Russia Franchise Business Unit. From November 1, 2001 through April 2004, Mr. Higgins
served as Director of Development and Franchise Recruitment for Yum! Brands Europe.
Item 1A. Risk Factors
Special Note Regarding Forward−Looking Statements
Certain statements made in this report that reflect management’s expectations regarding future events and economic performance
are forward−looking in nature and, accordingly, are subject to risks and uncertainties. These forward−looking statements include
statements regarding our intent to focus on sales growth and profitability; our ability to drive sales growth by enhancing the guest
experience and expanding competitive hours of operation; our intent to expand our international platform and accelerate new
restaurant development; our beliefs and expectations regarding system−wide average restaurant sales; our beliefs and expectations
regarding franchise restaurants, including their growth potential and our expectations regarding franchisee distress; our expectations
regarding opportunities to enhance restaurant profitability and effectively manage margin pressures; our intention to continue to
employ innovative and creative marketing strategies and offer superior value and quality, including the launching of new and limited
time offer products; our intention to focus on our restaurant reimaging program; our ability to use proactive portfolio management to
drive financial performance and development; our exploration of initiatives to reduce the initial investment expense, time and
uncertainty of new builds; our ability to manage fluctuations in foreign currency exchange and interest rates; our estimates regarding
our liquidity, capital expenditures and sources of both, and our ability to fund future operations and obligations; our expectations
regarding increasing net restaurant count; our estimates regarding the fulfillment of certain volume purchase commitments; our beliefs
regarding the effects of the realignment of our European and Asian businesses; our expectations regarding the impact of accounting
pronouncements; our intention to renew hedging contracts; our expectations regarding unrecognized tax benefits; and our continued
efforts to leverage our global purchasing power. These forward−looking statements are only predictions based on our current
expectations and projections about future events. Important factors could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied by these forward−looking statements, including, but not limited to,
the risks and uncertainties discussed below.
Our success depends on our ability to compete with our major competitors.
The restaurant industry is intensely competitive and we compete in the United States and internationally with many
well−established food service companies on the basis of product choice, quality, affordability, service and location. Our competitors
include a large and diverse group of restaurant chains and individual restaurants that range from independent local operators to
well−capitalized national and international restaurant companies. McDonald’s and Wendy’s are our principal competitors. As our
competitors expand their operations, including through acquisitions or otherwise, we expect competition to intensify. We also compete
against regional hamburger restaurant chains, such as Carl’s Jr., Jack in the Box and Sonic. Some of our competitors have substantially
greater financial and other resources than we do, which may allow them to react to changes in pricing, marketing and the quick service
restaurant segment in general better than we can. We have recently experienced negative sales and traffic trends due in part to heavy
discounting by other restaurant chains in the United States and other major markets. The failure to reverse these trends or intensification
of these trends will continue to negatively impact our operating results and the operating results of our franchisees.
To a lesser degree, we compete against national food service businesses offering alternative menus, such as Subway and Yum!
Brands, Inc.’s Taco Bell, Pizza Hut and Kentucky Fried Chicken, casual restaurant chains, such as Applebee’s, Chili’s, Ruby Tuesday’s
and “fast casual” restaurant chains, such as Panera Bread, as well as convenience stores and grocery stores that offer menu items
comparable to that of Burger King restaurants.
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