Fast food restaurant operator Burger King Worldwide Holdings, Inc. (BKW), which re-listed on the NYSE in June 2012, reported Friday a profit for the first quarter that soared from last year, reflecting lower interest and operating expenses. Adjusted earnings per share matched analysts' expectations, while quarterly revenues topped their estimates.
Further, the company announced a 20 percent increase in its quarterly dividend to $0.06 per share, payable on May 15 to shareholders of record at the close of business on May 1, 2013, and also authorized a $200 million share repurchase program.
"We delivered strong earnings per share growth of 49% in the first quarter of 2013 in spite of a challenging economic and competitive environment that resulted in negative comparable sales growth of 1.4% globally," CEO Bernardo Hees said in a statement.
Hees is now slated to take over as the CEO of Ketchup king H.J. Heinz Co. (HNZ), which is being taken private by Burger King parent investment fund 3G Capital and Warren Buffett's Berkshire Hathaway, Inc. (BRKA, BRKB). Burger King was taken private by 3G Capital in October 2010, and re-listed again in an unusual business combination with a subsidiary of Justice Holdings Ltd.
The Miami, Florida-based hamburger chain reported net income of $35.8 million or $0.10 per share for the first quarter, sharply higher than $14.3 million or $0.04 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $60.1 million or $0.17 per share, compared to $39.8 million or $0.11 per share in the year-ago quarter.
On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the first quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter dropped 42.5 percent to $327.7 million from $569.9 million in the same quarter last year. Five Wall Street analysts had a consensus revenue estimate of $318.67 million for the quarter.
System-wide sales increased 1.1 percent on a constant currency basis, and organic revenues fell 2.1 percent from last year.
System-wide comparable sales declined 1.4 percent, due to the impact of leap day and negative growth in the U.S. and Canada as well as Latin America and the Caribbean or LAC, partially offset by positive growth in Europe, the Middle East and Africa or EMEA and Asia Pacific or APAC.
"While comparable sales growth was not up to our expectations, we made progress toward achieving our target business model and remain committed to executing our Four Pillar strategy in the U.S. and Canada and driving net restaurant growth internationally," Hees added.
North American revenues declined 55.1 percent to $173.4 million, and EMEA sales also decreased 9.6 percent to $111.5 million from the year-ago quarter. Sales in LAC edged down 3.0 percent to $29.6 million, and APAC sales dropped 55.3 percent to $13.2 million from the same quarter last year.
Company restaurant revenues for the quarter plunged 69.4 percent to $121 million, while franchise and property revenues grew 18.9 percent to $206.6 million from the prior-year quarter.
Total operating costs and expenses declined 53.6 percent to $225.3 million from last year, with total Company restaurant expenses dropping 69.5 percent year-over-year to $108.1 million.
In Friday's regular trading session, BKW is currently trading at $18.22, up $0.16 or 0.91% on a volume of 0.16 million shares.
For comments and feedback: editorial@rttnews.com