Burger King 2010 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2010 Burger King annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

Table of Contents
In the United States and Canada, Company restaurant revenues increased by $159.9 million, or 14%, to $1,331.8 million for the
fiscal year ended June 30, 2009, compared to the prior fiscal year. This increase was primarily a result of a net increase of 59 Company
restaurants during fiscal 2009, including the net acquisition of 42 franchise restaurants, partially offset by $20.6 million of unfavorable
impact from the movement of currency exchange rates in Canada.
In EMEA/APAC, Company restaurant revenues decreased by $66.3 million, or 12%, to $488.6 million for the fiscal year ended
June 30, 2009, compared to the prior fiscal year. This decrease was primarily due to a $50.0 million unfavorable impact from the
movement of currency exchange rates and lost Company restaurant revenues due to the refranchising of restaurants in the prior year,
primarily in Germany and the U.K. as part of our ongoing portfolio management initiative.
In Latin America, Company restaurant revenues decreased by $9.0 million, or 13%, to $60.1 million for the fiscal year ended
June 30, 2009, compared to the prior fiscal year, primarily due to $10.0 million of unfavorable impact from the movement of currency
exchange rates and negative Company comparable sales growth of 3.2% (in constant currencies). However, this decrease was largely
offset by a net increase of eight Company restaurants during fiscal 2009.
Franchise Revenues
Total franchise revenues increased by $6.2 million, or 1%, to $543.4 million for the fiscal year ended June 30, 2009, compared to
the prior fiscal year, primarily due to the net increase of 291 franchise restaurants during fiscal 2009, worldwide franchise comparable
sales growth of 1.4% (in constant currencies) and a higher effective royalty rate in the U.S. These factors were partially offset by a
$24.2 million unfavorable impact from the movement of currency exchange rates.
In the United States and Canada, franchise revenues increased by $5.2 million, or 2%, to $323.1 million for the fiscal year ended
June 30, 2009, compared to the prior fiscal year. This increase was the result of a higher effective royalty rate in the U.S., partially
offset by the loss of royalties from 37 fewer franchise restaurants compared to the same period in the prior year, primarily due to the net
acquisition of 42 franchise restaurants by the Company, and a $1.0 million unfavorable impact from the movement of currency
exchange rates in Canada.
In EMEA/APAC, franchise revenues increased by $0.4 million, or 0.2%, to $173.4 million for the fiscal year ended June 30, 2009,
compared the prior fiscal year. This increase was primarily driven by a net increase of 260 franchise restaurants during fiscal 2009 and
franchise comparable sales growth of 3.3% (in constant currencies). These factors were largely offset by a $20.4 million unfavorable
impact from the movement of currency exchange rates.
Latin America franchise revenues increased by $0.6 million, or 1%, to $46.9 million for the fiscal year ended June 30, 2009,
compared to the prior fiscal year. This increase was primarily a result of the net addition of 68 franchise restaurants during fiscal 2009
and franchise comparable sales growth of 2.3% (in constant currencies). However, these factors were largely offset by a $2.8 million
unfavorable impact from the movement of currency exchange rates.
Property Revenues
Total property revenues decreased by $8.1 million, or 7%, to $113.5 million for the fiscal year ended June 30, 2009, compared to
the prior fiscal year, primarily due to a $5.9 million unfavorable impact from the movement of currency exchange rates and the
reduction in the number of properties in our portfolio, which includes the impact of the closure or acquisition of restaurants leased to
franchisees. These factors were partially offset by positive worldwide franchise comparable sales growth, which resulted in increased
revenues from percentage rents.
In the United States and Canada, property revenues decreased by $0.6 million, or 1%, to $88.1 million for the fiscal year ended
June 30, 2009, compared to the prior fiscal year, primarily as a result of the reduction in the number of properties in our portfolio and a
$0.7 million unfavorable impact from the movement of currency exchange rates. This decrease was partially offset by increased
revenues from percentage rents as a result of positive franchise comparable sales growth.
55