Burger King 2012 Annual Report Download - page 52

Table of Contents
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During 2012, system comparable sales growth of 5.7% in LAC was driven by comparable sales growth in Brazil and Mexico, partially offset by
negative system comparable sales growth in Puerto Rico.
During 2011, system comparable sales growth of 7.9% in LAC was driven by comparable sales growth in Brazil and Argentina, partially offset by
negative comparable sales growth in Puerto Rico.
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During 2012, Company restaurant revenues decreased primarily due to unfavorable FX impact, partially offset by Company comparable sales growth.
During 2011, Company restaurant revenues increased primarily due to positive Company comparable sales growth and slightly favorable FX impact.
During 2012, CRM% decreased primarily as a result of increased food, paper and product costs associated with price increases in certain commodities,
higher labor costs associated with wage rate increases, higher labor costs related to food delivery and kiosks and higher rent expense on certain lease renewals.
During 2011, CRM% increased primarily as a result of the leveraging effect of positive comparable sales growth on our fixed labor and occupancy and
other operating costs, favorability in food margins primarily driven by a new supplier contract and benefits realized from an adjustment to a previous estimate
of occupancy and other operating costs. These factors were partially offset by a shift in product mix driven by promotions of lower margin menu items,
acquisition accounting and higher labor costs associated with food delivery and kiosks.
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During 2012, franchise and property revenues increased due to franchise comparable sales growth and franchise NRG of 165 restaurants during 2012,
which resulted in increased royalties. Additionally, initial franchise fees increased as a result of the increase in franchise NRG and renewal and other related
franchise fees increased primarily due to the early renewal of franchise agreements. These factors were partially offset by the prior year collection and
recognition of cumulative royalties previously deferred.
During 2011, franchise and property revenues increased due to franchise NRG, franchise comparable sales growth, the collection and recognition of
cumulative royalties previously deferred and an increase in initial franchise fees driven by an increase in franchise NRG. These factors were partially offset
by the recovery of previously reserved receivables. FX impact was not significant.
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During 2012 and 2011, segment income increased due to an increase in net franchise and property income and decreases in segment SG&A as well as
an increase in CRM in 2011. The increase in segment income during 2012 was partially offset by a decrease in CRM.
During 2012 and 2011, segment margin increased primarily as a result of the higher contribution of franchise and property revenues in the segment,
which yield higher margins than Company restaurant revenues, as well as an increase in CRM% in 2011. The increase in segment margin during 2012 was
partially offset by a decrease in CRM%.
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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