Burger King Worldwide Inc. (NASDAQ:BKW) Does Well in 3Q14

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By Yashar Ghaffarloo on November 18, 2014 Consumer Staples

Burger King Worldwide Inc. (NASDAQ:BKW) has its headquarters in Florida. It has almost 13,500 fast food restaurants in 100 different countries. Most of the restaurants, about 99%, are franchised. The popular menu items of the restaurant chain include burgers, sandwiches, French fries and beverages. In 2010, the company acquired 3G Special Situations Fund II. Just recently, Burger King Worldwide Inc. (NASDAQ:BKW) also acquired Tim Hortons (NASDAQ:THI).

On 4^th November, Burger King Worldwide Inc. (NASDAQ:BKW) released their earnings for the third quarter. The earnings per share, after making adjustments, were $0.27, 17% higher than the EPS during the same quarter last year. Burger King Worldwide Inc. (NASDAQ:BKW)’s earnings for the third quarter reached the estimates of analysts.

EPS increased over the year however, the revenue declined. A net loss worth $23.5 million was reported by the company during the third quarter of the current fiscal.

Burger King Worldwide Inc. (NASDAQ:BKW) is in competition with food giants like McDonald’s Corp. (NASDAQ:MCD) and Yum! Brands (NASDAQ:YUM). McDonald’s Corp. (NASDAQ:MCD)’s earnings for the third quarter reported EPS worth $1.09. The adjusted EPS were $1.51, which is 28% lower than the EPS last year during the same quarter. Yum! Brands (NASDAQ:YUM)’s adjusted EPS in the third quarter of the current fiscal were $0.87, 2% higher than that of last year.

Let’s look at Burger King Worldwide Inc. (NASDAQ:BKW)’s same store sales The same-store sales of the company were very impressive in the third quarter. Same-store sales are important in generating revenue. In the third quarter, Burger King Worldwide Inc. (NASDAQ:BKW)’s same store sales increased by 2.4%. In the last year, the sales growth was 0.9%. Chipotle Mexican Grill (NASDAQ:CMG) has restaurants that are company-operated. In the third quarter of the current fiscal, Chipotle Mexican Grill (NASDAQ:CMG) reported same-store sales of about 19%.

As for Burger King Worldwide Inc. (NASDAQ:BKW), the driver for same-store sales was the King Deals value menu. On this menu, the restaurants offer a different sandwich every day. The same-store sales in the Asian-Pacific areas grew by 4.1%. As for Canada and US, the same-store sales growth rates were 3.6%. Growth in Middle East, Europe and Africa was 1.3%. Whereas in Latin America, the same-store sales were down by -3%.

Overall though, Burger King Worldwide Inc. (NASDAQ:BKW) performed much better than its competitors. In fact, it outperformed McDonald’s Corp. (NASDAQ:MCD) and KFC by Yum! Brands (NASDAQ:YUM). The same-store sales for KFC grew by 2% throughout the America. Whereas McDonald’s Corp. (NASDAQ:MCD)’s same-store sales fell by -3%.

Burger King Worldwide Inc. (NASDAQ:BKW) introduced new items in their menu in the third quarter; this helped the company gain same-store sales. The new products included the Ultimate Bacon Cheeseburger and Mushroom and Swiss Bacon Whopper. The new products help refresh the menu. Not only did Burger King Worldwide Inc. (NASDAQ:BKW) launch new products, but also it reintroduced a previously discontinued menu item – Chicken Fries. After the discontinuation, several customers requested that the company reintroduce the Chicken Fries in the menu again. This, along with the new launches help the company achieve a healthy third quarter.