Burger King 2010 Annual Report Download - page 37

Table of Contents
National Franchisee Association v. Burger King Corporation, No. 09−CV−23435 (U.S. District Court for the Southern District of
Florida) and Family Dining, Inc. v. Burger King Corporation, No. 10−CV−21964 (U.S. District Court for the Southern District of
Florida). The National Franchisee Association, Inc. and several individual franchisees filed these class action lawsuits on November 10,
2009, and June 15, 2010, respectively, claiming to represent Burger King franchisees. The lawsuits seek a judicial declaration that the
franchise agreements between BKC and its franchisees do not obligate the franchisees to comply with maximum price points set by
BKC for products on the BK® Value Menu sold by the franchisees, specifically the 1/4 lb. Double Cheeseburger and the Buck Double.
The Family Dining case also seeks monetary damages for financial loss incurred by franchisees who were required to sell those
products for no more than $1.00. In May 2010, the court entered an order in the NFA v. BKC case granting in part BKC’s motion to
dismiss. The court held that BKC had the authority under its franchise agreements to set maximum prices but that, for purposes of a
motion to dismiss, the NFA had asserted a “plausible” claim that BKC’s decision may not have been made in good faith. Both cases
have been consolidated in front of the same judge. While the Company believes its decision to put the 1/4 lb. Double Cheeseburger and
the Buck Double on the BK Value Menu was made in good faith, the Company is unable to predict the ultimate outcome of these cases.
From time to time, we are involved in other legal proceedings arising in the ordinary course of business relating to matters
including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual
property.
Part II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market for Our Common Stock
Our common stock trades on the New York Stock Exchange under the symbol “BKC.” Trading of our common stock commenced
on May 18, 2006, following the completion of our initial public offering. Prior to that date, no public market existed for our common
stock. As of August 19, 2010, there were approximately 524 holders of record of our common stock. The following table sets forth the
high and low sales prices of our common stock as reported on the New York Stock Exchange and dividends declared per share of
common stock for each of the quarters in fiscal 2010 and fiscal 2009:
2010 2009
Dollars
per
Share: High Low Dividend High Low Dividend
First Quarter $ 19.50 $ 15.61 $ 0.0625 $ 30.95 $ 22.77 $ 0.0625
Second Quarter $ 19.13 $ 16.63 $ 0.0625 $ 24.93 $ 16.56 $ 0.0625
Third Quarter $ 21.51 $ 17.10 $ 0.0625 $ 24.48 $ 19.21 $ 0.0625
Fourth Quarter $ 22.19 $ 16.80 $ 0.0625 $ 24.10 $ 15.85 $ 0.0625
Issuer Purchases of Equity Securities
The following table presents information related to the repurchase of our common stock during the three months ended June 30,
2010:
Maximum Number (or
Total Number of Shares Approximate Dollar Value) of
Total Number Purchased as Part of Shares That May Yet be
of Shares Average Price Publicly Announced Purchased Under
Period Purchased(1) Paid per Share Plans or Programs(2) the Plans or Programs(2)
April 1−30, 2010 — — — $ 200,000,000
May 1−31, 2010 15,366 $ 20.07 — $ 200,000,000
June 1−30, 2010 — — — $ 200,000,000
Total 15,366 $ 20.07 — $ 200,000,000
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