Burger King 2009 Annual Report Download - page 49

Table of Contents
unemployment, more customers eating at home, heavy discounting by other restaurant chains and the H1N1 flu pandemic.
Comparable sales growth in the United States and Canada for fiscal 2009 was driven primarily by our strategic pricing initiatives
and barbell menu strategy focusing on indulgent products and value offerings. However, comparable sales for the period were
negatively impacted by significant traffic declines during the third and fourth quarters, driven by continued adverse macroeconomic
conditions, including higher unemployment, more customers eating at home and heavy discounting by other restaurant chains. Products
and promotions featured during fiscal 2009 include BK Burger Shots and BK Breakfast Shots, Whopper sandwich limited time offers,
such as “Transform your Whopper,” the introduction of the new BK® Kids Meal (including Kraft® Macaroni and Cheese and BK Fresh
Apple Fries), the Angry Whopper sandwich, the Steakhouse Burger, the Spicy Chicken BK Wrapper ® and the Whopper Virgins and
Whopper Sacrifice marketing campaigns. SuperFamily promotions, such as Star Trektm, Transformerstm2, Pokémontm, Sponge Bob
SquarePantstm, The Simpsonstm, iDogtm and a Nintendotm giveaway promotional tie−in with the BK® Crown Card, also contributed to
positive comparable sales.
Comparable sales growth in EMEA/APAC in fiscal 2009 reflected positive sales performance in most major countries in this
segment, with the exception of Germany, which experienced negative comparable sales growth during the period due to significant
traffic declines in the third and fourth quarters caused by adverse economic conditions and heavy discounting by our major competitor
in Germany. Positive comparable sales were driven primarily by our strategic pricing initiatives, operational improvements,
value−driven promotions such as the King Deals in Germany, the U.K. and Spain and the Whopper sandwich and Whopper Jr.
sandwich value meal promotions in Australia, as well as high quality indulgent products such as Whopper sandwich limited time offers
throughout the segment, BK Fusiontm Real Ice Cream and the Long Chickentm sandwich limited time offer in Spain. SuperFamily
promotions, such as The Simpsonstm, iDogtm, Crayolatm and Secret Palazztm, positively impacted comparable sales for the fiscal year.
Comparable sales in EMEA/APAC for fiscal 2009 were negatively impacted by traffic declines during the third and fourth quarters,
particularly in Germany.
Although comparable sales increased in Latin America in fiscal 2009, our sales performance was negatively impacted by
significant traffic declines in the third and fourth quarters, particularly in Mexico, due to continued adverse socioeconomic conditions
and the resulting slowdown in tourism, the H1N1 flu pandemic in Mexico and South America, the devaluation of local currencies and
lower influx of remittances from the U.S. Comparable sales in fiscal 2009 were also adversely affected by softer performance in Puerto
Rico due to the introduction of a VAT tax, which has negatively affected disposable income. Products and promotions featured during
the fiscal year include the introduction of the Angry Whopper sandwich throughout the region, the Chipotle Whopper in Mexico, the
BK® Stacker promotion in Argentina and Chile, the Crown Whopper Jr. and Whopper Jackpot sweepstakes in Puerto Rico, the
Steakhouse Burger platform, including the Mushroom & Swiss Steakhouse Burger in Central America, Puerto Rico and the Caribbean
and the new BK® Fish Wrap for the Lenten season. We continued to focus on value with the Come Como Rey (Eat Like a King)
everyday value menu in Mexico, Central America and the Caribbean, the XL double burger value promotion in Argentina, Chile and
the Dominican Republic and the double and triple Crown Whopper Jr. sandwich promotion in Puerto Rico. In addition, our regional
Latin Billboard music promotion in selected markets in the region, the successful breakfast relaunch in Puerto Rico and strong kids
properties such as Star Trektm, Pokémontm, Cabbage Patch Kidstm, Monster Jamtm and The Pink Panthertm positively impacted
comparable sales.
In the United States and Canada, our comparable sales growth performance increased in fiscal 2008 compared to fiscal 2007, as a
result of our innovative advertising, our barbell menu strategy, which featured new indulgent products such as the A−1 Steakhouse
Burger, BBQ Bacon Tendercrisp® chicken sandwich and Homestyle Melts, as well as new offerings on our BK Value Menu and BK
Breakfast Value Menu, such as the Spicy Chick’N Crisp® sandwich and the Cheesy Bacon BK Wrapper. Our results were also fueled by
successful product promotions, such as the Whopper 50th anniversary promotion featuring the Whopper Freakout media campaign in the
United States and the Whopper Superiority promotion, late−night hours and successful movie tie−ins, such as The Simpsons tm Movie,
Transformerstm, SpongeBob SquarePantstm, Snoopy®, Indiana Jonestm and the Kingdom of the Crystal Skulltm, Iron Mantm and The
Incredible Hulktm.
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