Burger King Holdings, Inc. (the “Company”) today reported its financial results for the quarter and year ended December 31, 2011.
“2011 was a pivotal year for the BURGER KING® brand, globally. In just one year following the acquisition, we refocused our business priorities in North America, accelerated our international growth and established a corporate culture of fiscal responsibility and ownership,” said Daniel Schwartz, chief financial officer. “These efforts enabled us to deliver 29 percent year over year growth in adjusted EBITDA to $585.0 million. Our positive results were achieved by delivering strong results in our international businesses coupled with corporate cost savings measures.”
Summary of Fourth Quarter Results:
- System-wide comparable sales grew by 1.2 percent compared to the prior year period, with Latin America and Caribbean (“LAC”) and Europe, Middle East and Africa (“EMEA”) driving the positive results;
- Net restaurant growth (“NRG”) of 117 restaurants, compared to 45 restaurants in the prior year period;
- Adjusted EBITDA increased by 35 percent, or $40.1 million, compared to the prior year period due to strong results in LAC and EMEA and continued benefits from the Company’s previously disclosed global restructuring and zero-based budgeting (“ZBB”) program;
- Adjusted net income was $54.5 million, compared to $19.2 million for the prior year period despite increased interest costs due to strong results in LAC and EMEA and continued benefits from the Company’s global restructuring and ZBB program;
- Net income was $29.4 million, compared to a loss of $93.9 million for the prior year period. The improvement from the prior year period is primarily due to the impact of transaction costs incurred in connection with the acquisition of the Company in October 2010; and
- Management general and administrative (“Management G&A”) expenses decreased by 32 percent, or $28.4 million, compared to the prior year period. Total selling, general and administrative expenses decreased by 56 percent, or $144.1 million, compared to the prior year period. These decreases are primarily attributable to the results of our global restructuring and ZBB program.
Summary of Full-Year Results:
- System-wide comparable sales were negative 0.5 percent, with negative results in North America and Asia Pacific (“APAC”) largely offset by positive results in LAC and EMEA;
- System-wide sales grew by 1.7 percent compared to the prior year;
- NRG totaled 261 restaurants, compared to 173 restaurants in the prior year;
- Adjusted EBITDA increased by 29 percent to $585.0 million, for the same reasons as set forth above for the fourth quarter;
- Adjusted net income was $197.4 million, compared to $161.7 million in the prior year, for the same reasons as set forth above for the fourth quarter;
- Net income was $107.0 million, compared to $59.6 million in the prior year, for the same reasons as set forth above for the fourth quarter;
- Management G&A expenses decreased by 30 percent, or $107.2 million, compared to the prior year for the same reasons as set forth above for the fourth quarter. Total selling, general and administrative expenses for 2011 decreased by 33 percent, or $202.0 million, compared to the prior year for the same reasons as set forth above for the fourth quarter; and
- Total net debt to adjusted EBITDA ratio was 3.9x as of December 31, 2011, a 1.8x decrease over the total net debt to adjusted EBITDA ratio of 5.7x as of December 31, 2010.
2012 Outlook:
Looking ahead to 2012, the Company believes that it is well positioned to capitalize on its positive momentum and will remain focused on its core business priorities to strengthen its business in North America. Additionally, the Company remains dedicated to aggressively expanding its global footprint through large franchisee development in key international markets.
About Burger King Holdings, Inc.
Founded in 1954, BURGER KING® is the second largest fast food hamburger chain in the world. The original HOME OF THE WHOPPER®, the BURGER KING® system operates in over 12,500 locations serving over 11 million guests daily in 81 countries and territories worldwide. Approximately 90 percent of BURGER KING® restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Burger King Corp. is privately-held by 3G Capital, a multi-billion dollar, global investment firm focused on long-term value creation. For more information on 3G Capital, please go to http://3g-capital.com. To learn more about Burger King Corp., please visit the company’s website at www.bk.com or follow us on Facebook and Twitter.