Burger King Beats, Initiates Dividend

Burger King Worldwide Inc. (NYSE: BKW) reported third-quarter 2012 results before markets opened this morning. The fast-food restaurateur posted adjusted diluted earnings per share (EPS) of $0.17 on revenues of $451 million. In the same period a year ago, the company reported EPS of $0.16 on revenues of $607.7 million. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.15 and $439.85 million in revenues.

The year-over-year decline in revenues was attributed to refranchising transactions and to an unfavorable currency exchange rate. Same-store sales rose 1.6% in North America and 1.8% in Europe, Middle East and Africa. Latin American same-store sales rose 2.7% in the quarter, and only the company’s Asia-Pacific region noted a decline in same-store sales, down 2.2%.

Burger King did not offer any guidance, but the consensus estimates call for fourth-quarter EPS of $0.14 on revenue of $378.43 million. The current full-year estimate calls for EPS of $0.56 on revenue of $1.93 billion.

The third quarter was Burger King’s first full quarter as a publicly traded company. Burger also announced a quarterly cash dividend of $0.04 to be paid on November 29 to shareholders of record as of November 9.

The company’s shares closed at $14.95 on Friday, in a 52-week range of $12.91 to $16.31. Equity markets are closed in the U.S. today due to Hurricane Sandy. The consensus target price for the shares was around $16.90 before today’s report.

Paul Ausick