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Must-know: Burger King’s 2nd quarter 2014 earnings overview

Amit Jhaveri

Must-know: Burger King's 2nd quarter 2014 earnings overview (Part 1 of 12)

Burger King Worldwide Inc. company overview

Burger King Worldwide Inc. (BKW) is headquartered in Florida. It operates fast food hamburger restaurants in 100 countries with 13,500-plus restaurants. Over 99% of Burger King’s restaurants are franchised. Burger King offers hamburgers, french fries, chicken and specialty sandwiches, and beverages. The items on the menu are fairly affordable, with Burger King even offering items as low as $1.

Burger King was acquired by 3G Capital Special Situations Fund II LP in 2010.

Earnings per share

Burger King’s second quarter earnings were released on August 1, 2014. The company reported an adjusted earnings per share (or EPS) of $0.25, which increased by 19% from $0.21 in the corresponding quarter last year. The increase was due to a 13% increase in EBITDA, a 14% increase in operating income, and a 19% increase in net income over the same period. The weighted average shares outstanding remained unchanged.

Burger King competes with big chains like McDonald’s (MCD)—which reported earnings per share of $1.40, up 1% from last year, Yum! Brands (YUM)—which reported earnings per share of  $0.73, up 20% from last year, and Wendy’s (WEN)—which reported earnings per share of $0.8, down 33% from last year

Restaurant chains are a part of the consumer discretionary sector, which is also represented by exchange-traded funds (or ETFs) like the Consumer Discretionary Select Sector SPDR Fund (XLY) since spending at a restaurant increases with an increase in discretionary income and vice versa.

Topics discussed in this quarterly overview

In this quarterly overview series for Burger King Worldwide, Inc., we’ll take a deeper look into the company’s earnings. We’ll also discuss key value metrics like same-store sales, cost impacts, how the market reacted to the earnings, and Burger King’s year-to-date stock performance.

Continue to Part 2

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