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...

Filed under: news

 
 
 

12 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.

Like our charts? Embed them in your own posts using the Trefis WordPress Plugin .

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

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

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat w ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

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

Collingwood Magpies Training Session
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was bro ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

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

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was reject ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 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 Minister, Datuk Seri Hishammuddi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

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

INDIA-CHINA-DIPLOMACY-TRADE
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

6 weeks ago

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

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

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

 
Update
4

6 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 Industr ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 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

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving a ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

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

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan B ...
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 billion Kinrara Damansara Skyway ( ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

47 killed in Taiwan as plane makes botched landing (Roundup)
Taipei, July 23 (IANS) Forty-seven people on board a Taiwanese TransAsia Airways plane were killed in a failed emergency landing in the island county of Penghu Wednesday, Taiwan's transportation authority has confirmed.
 
 
47 killed in Taiwan plane's botched landing
Taipei, July 23 (IANS) Forty-seven people on board a Taiwanese TransAsia Airways plane were killed in a failed emergency landing in the island county of Penghu Wednesday, Taiwan's transportation authority has confirmed.
 
 
51 killed in Taiwan plane emergency landing
Beijing, July 23 (IANS) At least 51 people were killed and seven others injured when a passenger plane with Taiwan's TransAsia Airways made an emergency landing on the outlying island county of Penghu Wednesday, media reported.
 
 
High salt ups heart disease risk in diabetics
Tokyo, July 23 (IANS) People with Type-2 diabetes have more to add to their list of dietary restrictions as researchers have found that a high salt diet may double their risk of developing cardiovascular disease.
 
 
 

Latest from the Network

Zoe Saldana pregnant?
Los Angeles, July 24 (IANS) "Avatar" fame actress Zoe Saldana is reportedly expecting her first child. The 36-year-old is set to become a mother for the first time with her Italian artist husband Marco Perego, reports...
Read more on Celebrity Balla
 
Apple’s iBeacons are paying off for advertisers in a huge way
There was a great deal of interest surrounding Apple’s iBeacons when they launched alongside iOS 7 late last year, but as they are still in the initial stages of deployment, we haven’t seen much data regarding their...
Read more on Apple Balla
 
India leads players' parade at Commonwealth Games opening ceremony
Glasgow, July 24 (IANS) London Olympics silver medallist Vijay Kumar proudly carried the tri-colour as India, by the virtue of being the previous hosts, led the 2014 Commonwealth Games opening ceremony parade around...
Read more on Sport Balla
 
World War II bomb defused in Germany
Berlin, July 24 (IANS) Task forces Wednesday succeeded in defusing a World War II bomb in a district of Germany's Cologne, media reports said. The bomb was discovered Tuesday during construction work on the site of...
Read more on Politics Balla
 
Naya Rivera gets hitched
Los Angeles, July 24 (IANS) "Glee" star Naya Rivera married actor Ryan Dorsey in Cabo San Lucas, Mexico in front of a small group of close family. The wedding took place July 19. Expressing their happiness, the couple...
Read more on Celebrity Balla
 
Scottish actors Dunbar, Barrowman kick-start CWG opening ceremony
Glasgow, July 24 (IANS) The opening ceremony of the 2014 Commonwealth Games got off to a colourful start with a jig from Scottish actor John Barrowman and comedian Karen Dunbar at the Celtic Park here Wednesday....
Read more on Sport Balla
 
Toll hits 682 in Gaza Strip
Gaza, July 24 (IANS) The toll in the ongoing Israeli offensive in the Gaza Strip, which started July 8, has grown to 682, authorities said Wednesday. Israeli airstrikes and tank shelling as part of the 'Operation...
Read more on Politics Balla
 
Jennifer Aniston and Sandra Bullock 'best friends'
Jennifer Aniston and Sandra Bullock have reportedly become the ''best of friends''. The 45-year-old star and the 49-year-old actress have struck up a close relationship after meeting at mutual pal Gwyneth Paltrow's...
Read more on Celebrity Balla
 
JWoww 'blacked out' during labor
Jenni 'JWoww' Farley has claimed she ''blacked out'' when she was giving birth to her daughter. The former 'Jersey Shore' star - who was induced 39 weeks into her pregnancy - admits her labor was ''way more painful''...
Read more on Celebrity Balla
 
Lana Del Rey likes 'passionate love'
Lana Del Rey likes to have a ''passionate love''. The 29-year-old singer believes a large proportion of a relationship is based on sex and she admits she isn't interested in romance unless it is ''physical''. Speaking...
Read more on Celebrity Balla