Miami / FL. (bk) Burger King Worldwide Inc. in February reported financial results for the fourth quarter and year ended December 31, 2013. BKW Chief Executive Officer Daniel Schwartz: «2013 was an important year for Burger King Worldwide as we grew our brand presence around the globe and made significant progress towards achieving our long-term strategic goals. We completed our global re-franchising initiative, fundamentally transforming our business model and putting restaurant operations into the hands of our experienced franchisees. In North America, our focus on launching fewer, more impactful products helped drive improved sales trends as the year progressed. We grew comparable sales across all three international regions, opened 670 net new restaurants globally, and formed joint ventures in France and India to lay the foundation for continued expansion. We believe that we have the right team in place to capitalize on this success in 2014 and generate long-term value for franchisees and shareholders».
Full Year 2013 Highlights:
- Global comparable sales increased 0,5 percent and system-wide sales increased 4,2 percent in constant currency
- Adjusted Diluted EPS increased 22,4 percent to 0,84 USD per share
- Adjusted Ebitda increased 10,0 percent on an organic basis to 665,6 million USD
- Successfully completed global re-franchising initiative
- Net restaurant growth of 670, representing 5,2 percent system restaurant growth versus 2012
Fourth Quarter 2013 Highlights:
- Global comparable sales increased 1,7 percent, and system-wide sales increased 5,7 percent in constant currency
- Adjusted Diluted EPS increased 4,4 percent to 0,24 USD per share
- Adjusted Ebitda increased 14,3 percent on an organic basis to 182,1 million USD
- Net restaurant growth of 408, a 23,6 percent increase from the fourth quarter of 2012
- Declared a cash dividend of 0,07 USD per share for the first quarter of 2014
System-wide sales grew 5,7 percent in the fourth quarter, driven by comparable sales growth across all four regions and strong new unit growth. We opened 670 net new restaurants in 2013, representing a 38,1 percent year-over-year increase.
Fourth quarter total reported revenues of 265,2 million USD declined (34,4 percent) from the prior year primarily due to the net re-franchising of 360 company-owned restaurants in 2013. On an organic basis, excluding the impact of these global re-franchising transactions and currency movements, revenue increased 5,2 percent year-over-year due to net restaurant growth and global comparable sales growth.
Fourth quarter Adjusted Ebitda of 182,1 million USD grew 14,3 percent from the prior year on an organic basis, excluding the impact of re-franchising transactions and currency movements, driven by double-digit Ebitda growth in Europe, the Middle East, and Africa (EMEA), Latin America and the Caribbean (LAC), and Asia Pacific (APAC). For the full year 2013, Adjusted Ebitda was 665,6 million USD, a 10,0 percent organic increase from 2012.
Fourth quarter Adjusted Net Income and Adjusted Diluted EPS increased 5,0 percent and 4,4 percent, respectively, compared to the prior year, due to an increase in Adjusted Ebitda partially offset by increased share-based compensation expense and increased income tax expense. For the full year 2013, Adjusted Net Income and Adjusted Diluted EPS grew 23,6 percent and 22,4 percent, respectively, compared to the prior year.
Operational and Segment Highlights:
Despite a strong prior year comparison, U.S. and Canada delivered positive comparable sales growth in the fourth quarter. Comparable sales growth has improved sequentially every quarter of 2013 due to a well-balanced promotional mix and our commitment to launching fewer, more impactful products. During Q4, the introduction of the BIG KING(TM) sandwich and the first full quarter of «satisfries», a first of its kind better-for-you French fry, helped increase sales. In addition, we added the BBQ Rib Sandwich to help drive incremental traffic in the value tier. As part of our Four Pillar strategy of Menu, Marketing Communications, Image, and Operations, we delivered considerable progress on our reimaging initiative, completing approximately 600 remodels in 2013. Approximately 30 percent of the U.S. and Canada system is now on the modern image, up from 19 percent in 2012.
EMEA grew comparable sales by 3,3 percent in the fourth quarter, representing the twelfth consecutive quarter of comparable sales growth in the region. Germany continued to perform well due to a strong balance between premium limited time offerings (LTOs), such as the «merry cheesemas» seasonal promotion, and value platforms, such as «Trial Weeks». In Spain, the «euroking» platform helped us continue our strong performance in a competitive market. EMEA system-wide sales growth of 11,7 percent is partly attributable to 329 net new restaurant openings in 2013, a 37,7 percent increase from the prior year.
LAC delivered comparable sales growth of 1,8 percent in the fourth quarter, primarily driven by strong performance in Brazil. In Brazil, the «x-whopper» premium LTO and the roll-out of the BK Rodeo Jr. sandwich were effective at generating sales growth. LAC system-wide sales growth of 17,3 percent includes the impact of 160 net new restaurant openings in 2013.
APAC generated comparable sales growth of 6,2 percent in the fourth quarter, driven by continued strength in Australia and South Korea, where new premium offerings complemented the Hero and WOW value platforms. China continued its positive momentum due to premium LTOs and a new afternoon snacking value menu that is performing well. APAC system-wide sales growth of 11,3 percent was partly driven by 221 net new restaurant openings in 2013, more than twice the number of net new restaurants we opened in the region in 2012.
As part of the BKW´s international expansion strategy, the company recently announced the formation of new joint ventures in France and India. We believe that we have the right operating and financial partners to build the Burger King brand and accelerate growth in both of these attractive markets.
