Burger King Worldwide Earnings: Here’s Why the Stock is Rising Now

Burger King Worldwide Inc (NYSE:BKW) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.78%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Burger King Worldwide Inc Earnings Cheat Sheet


Revenue: Decreased 42.5% to $327.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.17 per share. By that measure, the company missed the mean analyst estimate of $0.17. It beat the average revenue estimate of $318.67 million.

Quoting Management: “We delivered strong earnings per share growth of 49% in the first quarter of 2013 in spite of a challenging economic and competitive environment that resulted in negative comparable sales growth of 1.4% globally,” said Bernardo Hees, Chief Executive Officer, Burger King Worldwide, Inc. “In addition, we announced the increase of our dividend by 20% and initiated a $200 million share repurchase program, demonstrating our positive outlook for the long-term prospects of the business and commitment to returning cash to shareholders. While comparable sales growth was not up to our expectations, we made progress toward achieving our target business model and remain committed to executing our Four Pillar strategy in the U.S. and Canada and driving net restaurant growth internationally.”

Key Stats (on next page)…

Revenue decreased 18.99% from $404.5 million in the previous quarter. EPS decreased 26.09% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.18 to a profit $0.19. For the current year, the average estimate has moved up from a profit of $0.71 to a profit of $0.8 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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