Burger King Shares Jump on Solid EPS, Revenue Beat


Burger King Worldwide Inc. (NYSE: BKW) reported fourth-quarter and full year 2012 results before markets opened this morning.

For the quarter, the fast-food operator posted adjusted diluted earnings per share (EPS) of $0.23 on revenues of $404.5 million. In the same period a year ago, the company reported EPS of $0.14 on revenues of $580.6 million. Fourth-quarter results compare to the MarketWatch consensus estimate for EPS of $0.15 and the Thomson Reuters estimate of $375.31 million in revenues.

The company is controlled by 3G Capital, the same firm that partnered with Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) to acquire H.J. Heinz Co. (NYSE: HNZ) for $28 billion yesterday. 3G Capital sold just 16% of Burger King's shares in an IPO last June, about three-quarters of which were picked up William Ackman.

On a GAAP basis, EPS for the quarter totaled $0.14, compared with $0.07 in the same period a year ago.

For the full year, Burger King reported adjusted EPS of $0.69 on revenues of $1.97 billion, compared with EPS of $0.51 on revenues of $2.34 billion in 2011. The consensus estimate called for EPS of $0.60 on revenues of $1.94 billion.

The company's CEO said:

During 2012, we made significant progress on our re-imaging initiative, added international master franchise joint venture and development agreements, and refranchised 871 restaurants. We are proud of the hard work and dedication of our employees and franchisees that enabled us to deliver an excellent finish to a critical year for the company. We continue to execute on our strategy, and believe the company is well positioned to deliver sustainable long-term growth.

Burger King did not offer guidance in its announcement this morning, but the MarketWatch estimate calls for first quarter EPS of $0.14 and full-year EPS of $0.71. Thomson Reuters offers a consensus estimate for first quarter revenues of $330.7 million and full-year revenues of $1.27 billion.

The company's shares are up nearly 4% in premarket trading to $17.21, having closed last night at $16.58 in a 52-week range is $12.91 to $18.46. Thomson Reuters had a consensus analyst price target of around $18.40 before today's report.

Filed under: 24/7 Wall St. Wire, Earnings, Food, Services Tagged: BKW, BRK-A, HNZ