Burger King 2013 Annual Report Download - page 34

Table of Contents
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You should read the following discussion together with Part II, Item 6 “Selected Financial Data” and our audited Consolidated Financial
Statements and the related notes thereto included in Item 8 “Financial Statements and Supplementary Data.” In addition to historical consolidated
financial information, this discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Actual results could differ from
these expectations as a result of factors including those described under Item 1A, “Risk Factors,” “Special Note Regarding Forward-Looking
Statements” and elsewhere in this report.
Unless the context otherwise requires, all references in this section to“BKW,” the “Company,” “we,” “us,” or “our” are to the Company and
its subsidiaries, collectively. Unless otherwise stated, comparable sales growth and sales growth are presented on a system-wide basis, which means
that these measures include sales at both Company restaurants and franchise restaurants. Franchise sales represent sales at all franchise restaurants
and are revenues to our franchisees. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on
franchise sales. System-wide results are driven by our franchise restaurants, as approximately 100% of our current system-wide restaurants are
franchised.
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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 Burger King® 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, 2013,
we owned or franchised a total of 13,667 restaurants in 97 countries and U.S. territories worldwide. Of these restaurants, 13,615 were owned by our
franchisees and 52 were Company restaurants. 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 and product platforms appealing to different customer groups. During our nearly 60 years of operating history, we have developed a
scalable and cost-efficient quick service hamburger restaurant model that offers guests 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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• Global comparable sales increased 0.5% and system-wide sales increased 4.2% in constant currency
• Diluted EPS increased 97% to $0.65 per share
• Successfully completed global refranchising initiative
• Net restaurant growth of 670, representing 5.2% system restaurant growth versus 2012
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Source: Burger King Worldwide, Inc., 10-K, February 21, 2014 Powered by Morningstar® Document Research℠
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