10 Updates

Burger King Worldwide Earnings Preview: Sales And Margins To See Incremental Growth

Apr 25 2014, 12:59pm CDT | by

Burger King Worldwide is scheduled to release its Q1 2014 earnings on April 25. The company had a good year in 2013, recording a 0.5% rise in same-store sales. Comparable sales or same-store sales...

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13 weeks ago

Burger King Worldwide Earnings Preview: Sales And Margins To See Incremental Growth

Apr 25 2014, 12:59pm CDT | by

Burger King Worldwide is scheduled to release its Q1 2014 earnings on April 25. The company had a good year in 2013, recording a 0.5% rise in same-store sales. Comparable sales or same-store sales, is an important measure to gauge a restaurant’s performance since it only includes restaurants operating for more than a year and excludes the effect of currency fluctuation. Last quarter, the same-store sales increased by 1.7%. Keeping in mind Burger King’s expansion plans, store re-imaging efforts and menu optimization, we expect increasing sales and widening margins in Q1 2014.

We have a price estimate of $28.97 for Burger King , which is about 13% above the current market price.

See full analysis for Burger King

Sales To See Incremental Growth

The company observed a negative impact on sales in Q4 2013 due to the extreme winter weather and expects the effect to continue in Q1 2014. Moreover, it faces tough competition from fast food chains such as McDonald’s and fast casual chains such as Chipotle Mexican Grill and Panera Bread. However, Burger King is trying to differentiate through re-imaging its outlets and optimizing its menu offerings. By Q4 2013, 30% of Burger King outlets in the U.S. had been remodeled on the modern “20/20″ image. These remodeled outlets had recorded an average sales uplift of 15-20%. The company plans on remodeling 40% of its stores in the U.S. by 2015. This could contribute to lifting the sales in the U.S. outlets in the first quarter this year.

Last quarter, the company had also successfully introduced new offerings in the menu, namely the Big King Sandwich and BBQ Rib Sandwich. These new items offer wider options in the larger burger segment and are expected to attract more customers to some extent.

Franchise Royalties To Rise As Expansion Continues

Burger King completed its global re-franchising initiative in Q4 2013, handing over all but 52 of its stores to franchisees. The franchising model proves profitable to the company as it doesn’t require it to incur operating costs. According to our valuation, Franchise Royalty contributes 74% to the company’s share price. Burger Kings’ expansion plans are expected to boost the franchise royalty stream of revenue for the company, which will lead to wider margins.

The company added 670 new restaurants in 2013, bringing the its total store count to 13,500. Joint ventures initiated by the company in China, Brazil and Russia have grown significantly adding 100 more outlets in these markets last year. In 2014,the company plans to further expand internationally and also to enter France and India.

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Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by rob ...
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Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by ...
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Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minist ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states l ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 2014 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 bill ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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