Burger King Beats On EPS, Sales; Tops Full-Year Growth Estimates

Reversing a loss from a year ago when it had to pay $0.26-a-share in expenses related to IPO costs, Burger King swung to a gain in its recently ended quarter (F4Q07), on an 11% y/y increase in revenues and a 4.4% y/y increase in global same-store sales (check back later for BKC's most recent earnings call transcript). Excluding a $0.03-a-share charge on lease termination costs, adjusted EPS was $0.29 on net income of $36 million. The fast food burger maker recorded a net loss of $10 million in the year earlier period and adjusted EPS of $0.18. Revenue climbed 11% to $590 million as same store sales in the U.S. and Canada rose 4.8%. Consensus analyst estimates were looking for adjusted EPS of $0.27 on revenue of $580 million. For FY07, which ended with the recent quarter, Burger King's revenue climbed 9% to $2.23 billion, above its initial estimate of 6-7% growth, which it announced it would likely top in April. According to CEO John Chidsey, "We expect to see rapid development in the coming years in all of our international segments... For fiscal 2008, we expect to perform at the top of our industry." Shares are up nearly 34% since the company's IPO in May 2006; shares were higher by 1.3% in composite trading Thursday and gained an additional 3.05% after hours in anticipation of Friday's earnings report.

Sources: Press Release, Wall Street Journal, MarketWatch, Reuters
Commentary: Burger King Is Actually A Turnaround Story • Burger King's Post-LIPO Recovery • Cramer's Take on BKC
Stocks/ETFs to watch: BKC. Competitors: MCD, YUM, WEN. ETFs: VCR, PEZ, PBJ
Earnings call transcripts: Burger King F3Q07 (Qtr End 3/31/07)

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