Burger King 2013 Annual Report Download - page 38

Table of Contents
Comparable Sales Growth
Global system comparable sales growth of 0.5% for 2013 was driven primarily by comparable sales growth in the EMEA and APAC segments,
partially offset by negative comparable sales growth in the U.S. and Canada.
Global system comparable sales growth of 3.2% for 2012 was driven by comparable sales growth in the U.S. and Canada, EMEA and LAC segments,
partially offset by negative comparable sales growth in APAC.
Company restaurants
During 2013, Company restaurant revenues decreased primarily due to the net refranchising of Company restaurants during the past two years.
CRM% increased to 12.3% in 2013 from 11.3% in 2012 primarily as a result of retaining restaurants with higher than average CRM%.
During 2012, Company restaurant revenues decreased primarily due to the net refranchising of Company restaurants during 2012 and unfavorable FX
impact, partially offset by comparable sales growth.
CRM% decreased to 11.3% in 2012 from 11.7% in 2011 due to decreases in CRM% in the U.S. and Canada and LAC, partially offset by increases in
CRM% in EMEA and APAC. The effects of promotional activity, increased food, paper and product costs, higher wage rates in Germany and Mexico and
increased repair and maintenance expenses in the U.S. and Canada were partially offset by favorable adjustments to self insurance reserves in the U.S. and
Canada and the leveraging effect of Company comparable sales growth on fixed occupancy and other operating costs.
Franchise and Property
Franchise and property revenues consist primarily of royalties earned on franchise sales, rents from real estate leased or subleased to franchisees and
franchise fees and other revenue. During 2013, the increase in franchise and property revenues was driven by increases in royalties, property revenues and
franchise fees and other revenue. These increases were driven primarily by comparable sales growth in EMEA and APAC, worldwide net restaurant growth
and the net refranchising of Company restaurants during the past two years. These factors were partially offset by negative comparable sales growth in the
U.S. and Canada, a decrease in franchise fees and other revenue in LAC and unfavorable FX impact.
During 2013, franchise and property expenses increased primarily due to new leases and subleases associated with additional restaurants leased or
subleased to franchisees as a result of the refranchisings.
During 2012, the increase in franchise and property revenues was driven by increases in royalties and property revenues resulting from comparable
sales growth in the U.S. and Canada, EMEA and LAC, the net refranchising of Company restaurants during 2012 and worldwide net restaurant growth.
Additionally, franchise and property revenues increased as a result of a $22.6 million increase in franchise fees and other revenue primarily due to the timing
of renewals. These factors were partially offset by negative comparable sales growth in APAC and unfavorable FX impact.
During 2012, franchise and property expenses increased primarily due to new leases and subleases associated with additional restaurants leased or
subleased to franchisees as a result of the refranchisings, partially offset by a decrease in bad debt expense and favorable FX impact.
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Source: Burger King Worldwide, Inc., 10-K, February 21, 2014 Powered by Morningstar® Document Research℠
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