Burger King Worldwide Earnings: Here’s Why Investors are Happy Now

Burger King Worldwide Inc (NYSE:BKW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.07%.

Burger King Worldwide Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.53% to $0.21 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Decreased 48.54% to $278.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.19. It missed the average revenue estimate of $322.28 million.

Quoting Management: BKW Chief Executive Officer, Daniel Schwartz commented, “Strength in EMEA and APAC helped drive a return to positive comparable sales in the second quarter. We continued to accelerate international growth with 125 net restaurant openings, primarily in China, Turkey, Russia and Brazil, which could not have been possible without the solid execution of our experienced joint venture and master franchisee partners on the ground. Additionally, we successfully refranchised 305 restaurants, nearly completing our transformation to a fully-franchised business model. This model is designed to efficiently leverage the strength of the BURGER KING® brand while maximizing value for franchisees and shareholders. We believe that our proven strategy, world-class employees and high-performance culture will allow us to continue to generate sustainable, long-term growth.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 23.53% from $0.17 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.21 and has not changed. For the current year, the average estimate is a profit of $0.8, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)