Burger King 2012 Annual Report Download - page 37

Table of Contents
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
Burger King Worldwide, Inc. (“BKW”, the “Company” or “we”) is a Delaware corporation formed on April 2, 2012 and the indirect parent of Burger
King Corporation (“BKC”), a Florida corporation that franchises and operates fast food hamburger restaurants, principally under the  brand.
We are the world’s second largest fast food hamburger restaurant, or FFHR, chain as measured by the total number of restaurants. As of December 31, 2012,
we owned or franchised a total of 12,997 restaurants in 86 countries and U.S. territories. Of these restaurants, 418 were Company restaurants and 12,579,
or approximately 97% of all  restaurants, were owned by our franchisees. Our restaurants are limited service restaurants that feature flame-grilled
hamburgers, chicken and other specialty sandwiches, french fries, soft drinks and other affordably-priced food items. We believe our restaurants appeal to a
broad spectrum of consumers, with multiple day parts appealing to different customer groups. During our more than 50 years of operating history, we have
developed a scalable and cost-efficient quick service hamburger restaurant model that offers customers fast, delicious food at affordable prices.
We generate revenues from three sources: (1) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise
restaurants and fees paid by franchisees, (2) property income from properties that we lease or sublease to franchisees, and (3) retail sales at Company
restaurants.
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• System-wide comparable sales growth of 3.2% and system-wide sales growth of 5.9%
• Diluted EPS increased 31.3% to $0.33
• Adjusted EBITDA increased 11.5% to $652.1 million
• Net restaurant growth of 485, increasing the total system restaurant count to 12,997
• Successfully refranchised 871 restaurants, bringing the system to approximately 97% franchised
• Re-imaged approximately 600 system-wide restaurants in the U.S and Canada, increasing units on the modern image to 19% of the region
• Launched the largest menu update in the U.S. and Canada in the history of the brand
• Accelerated international growth, announcing five master franchise joint ventures and seven new development agreements in key growth markets
• Refinanced $1.9 billion of debt, lowering annualized cash interest costs
• Declared a cash dividend of $0.04 per share in the fourth quarter
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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