Burger King 2009 Annual Report Download - page 7

Table of Contents
more than 30 years of retail and consumer marketing experience, including at 7−Eleven Inc. Ben Wells,
our Chief Financial Officer, has over 30 years of finance experience, including at Compaq Computer
Corporation and British Petroleum. In addition, other members of our management team have worked at
Frito Lay, McDonald’s, Jack−in−the Box, PepsiCo, Pillsbury and Wendy’s. The core of our
management team has been working together since 2004.
Our Business Strategy
We intend to grow and strengthen our competitive position through the continued focus on our strategic global growth pillars —
marketing, products, operations and development — and the implementation of the following key elements of our business strategy:
• Drive further sales growth: We remain focused on achieving our comparable sales and average
restaurant sales potential. Essential components of this strategy are:
• Enhancing the guest experience — our key guest satisfaction and operations metrics showed continued
improvement in fiscal 2009 and we intend to further improve these metrics.
• Expanding competitive hours of operation — we have implemented initiatives to reduce the gap
between our hours of operation and those of our competitors, which we believe will increase
comparable sales and average restaurant sales in U.S. restaurants. As of June 30, 2009, 200 Company
restaurants in the United States were open 24 hours daily.
• Increasing emphasis on our restaurant reimaging program — we believe that dedicating capital
expenditures to our restaurant reimaging program in the United States and Canada will result in higher
sales and traffic in these restaurants and yield strong cash on cash returns. We have reimaged a total of
71 restaurants to date and plan to reimage 53 restaurants during fiscal 2010.
• Enhance restaurant profitability: We believe that opportunities exist to enhance restaurant profitability
by better utilizing our fixed cost base and exploring ways to mitigate labor, commodity and energy costs.
We are focused on leveraging our fixed cost structure by introducing higher margin products and creating
efficiencies through improved speed of service and equipment, such as headsets which we believe will
further improve speed of service. In the United States and Canada, the installation of the flexible batch
broiler has reduced energy consumption in Company restaurants, and we expect to further enhance
restaurant margins by utilizing our market based pricing model to achieve optimal pricing in our markets.
• Employ innovative marketing strategies and offer superior value and quality: We intend to continue to
employ innovative and creative marketing strategies to increase our restaurant traffic and comparable
sales. We expect to utilize our barbell menu strategy of innovative indulgent products and value menu
items to offer more choices to our guests and enhance the price/value proposition of our products. As part
of this strategy, in fiscal 2009, we expanded our indulgent menu and launched limited time offers,
including the Angry Whoppertm sandwich. At the other end of the barbell menu, we launched the
value−priced two−pack BK Burger Shots® and BK Breakfast Shotstm in the U.S., the King Dealstm in
Germany, the U.K. and Spain and the Come Como Reytm (Eat Like a King) every day value menu in
Mexico. As a result of the continuing recessionary environment and negative traffic and sales trends we
have experienced since March 2009, we plan to focus our efforts in fiscal 2010 on our brand equities of
flame−broiled taste, quality and size at affordable prices to differentiate Burger King restaurants from our
competitors. Finally, we continue to introduce new products to fill gaps in our breakfast, dessert and snack
menu offerings. We intend to roll−out several new and limited time offer products during the remainder of
fiscal 2010, including value focused products to promote our affordability message.
• Expand our large international platform: We intend to leverage our substantial international
infrastructure to expand our franchise network and restaurant base. Internationally, we are much smaller
than our largest competitor, and, therefore, we believe we have significant growth opportunities. We have
developed a detailed global development plan to accelerate growth over the next five years. We expect to
focus our expansion plans on (1) markets where we already have an established presence but which have
significant growth potential, such as Spain, Brazil and Turkey; (2) markets in which we have a small
presence, but
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