Miami, Florida, USA-headquartered Burger King Worldwide, Inc. on October 28 reported better than anticipated financial results for the third quarter ended September 30, 2013. Earnings at 23 cents a share were reportedly two cents higher than financial analysts had expected, which lifted the company’s stock price by 4.3% in pre-market trading.
The performance was spurred by international sales growth that offset a 0.3% decline in North America, where consumer confidence remains tepid. The best statistical performance was recorded in the Asia-Pacific market (+3.7%), followed by the combined Europe, Middle East and Africa (EMEA) region (+2.4%), and the Latin America/Caribbean market (+2.1%).
Overall revenues declined $275.1 million, as the Burger King refranchised 519 company-owned restaurants during the quarter.
Among third highlights underscored by CEO Daniel Schwartz:
- Global comparable sales increased 0.9% and system-wide sales rose 4.9% in constant currency
- Adjusted Diluted EPS increased 31.6%
- Adjusted EBITDA increased 16.7% on an organic basis to $176.0 million
- Adjusted EBITDA margin increased 2,822 basis points to 64.0%
- Net restaurant growth of 133, a 111.1% increase from the prior year
- Increased dividend from six cents to seven cents per share for the fourth quarter
“Our positive momentum continued in the third quarter, as we delivered double-digit organic EBITDA growth and industry best-in-class margins,” said Schwartz. “We grew comparable sales across all three international regions, and opened 133 net new restaurants globally. In the US and Canada, we launched SatisFries, a first of its kind “better-for-you” french fry, which demonstrates our commitment to leading innovation in the QSR industry. We believe that new products like this, combined with our focus on improving operations, will enhance the guest experience and drive increased restaurant profitability.”
On October 12 and 13 Burger King customers in participating restaurants across the United States were offered free samples of the crinkle-cut SatisFries, which are being promoted as having 40% less fat (eight grams) and 30% fewer calories (190) per value-size serving than other french fry products on the QSR market. Sodium content is listed at 210 milligrams.
Featuring thinly battered whole potatoes, SatisFries are formulated in a way in which less oil is absorbed, and thus assuring that each crinkle-cut fry is crispy on the outside and fluffy on the inside.
Now being menued right next to Burger King’s classic french fries in North America, the new offering carries a suggested retail price of $1.29 for a value-size serving, $1.89 for a small portion, $2.09 for a medium-size purchase, and $2.29 for a large size.
