FINANCE

Burger King Q1 net income grows on declining sales

BY Dan Berthiaume

Miami – Consolidated net income at Burger King Worldwide Inc. grew 68.7% year-over-year during the first quarter of fiscal 2014, rising to $60.4 million from $35.8 million. In the same period, total revenues fell 26.5% to $240.9 million from $327.7 million.

Systemwide same-store sales grew 2%. Burger King cited severe weather as negatively affecting North American sales, as well as the net refranchising of 327 company-owned stores during the quarter. The retailer attributed its net income growth to improvement in overseas EBITDA performance.

“We started off 2014 strong by generating same-store sales growth across all four regions during the first quarter,” said Daniel Schwartz, CEO. “Despite severe winter weather in the U.S. and Canada, our commitment to launching fewer, more impactful products and simplifying in-restaurant operations helped drive improved performance. Internationally, we maintained our strong sales momentum by rolling out innovative new products and accelerating net restaurant growth. Furthermore, we strengthened our global new restaurant pipeline to position ourselves for sustained growth in the months to come.”

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REAL ESTATE

Starbucks plans 1,500 new stores, expanded offerings

BY Dan Berthiaume

Seattle – Starbucks Coffee Corp. plans to open 1,500 new stores worldwide during 2014, including 600 in North America. Starbucks CEO Howard Schultz said that Starbucks is under-stored in many markets, including North America, during a conference call discussing the company’s second quarter financial results.

Other plans for 2014 including rolling out its made-to-order soda product at 3,000 U.S. stores and in South Korea and China, as well as testing expanded lunch offerings. Furthermore, Starbucks may license the technology for its mobile app, which could produce substantial revenue.

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OPERATIONS

Wal-Mart changes Asia management structure

BY Dan Berthiaume

Hong Kong — Wal-Mart Stores Inc. is changing the management structure of its Asia operation with a series of promotions. Scott Price, currently president and CEO of Walmart Asia, will move to a senior management role as executive VP, international strategy and development, real estate, mergers and acquisitions, integration and purchase leverage, based at Wal-Mart’s world headquarters in Bentonville, Arkansas.

Greg Foran, currently president and CEO of Walmart China, has been named president and CEO, Walmart Asia, and will be based in the company’s Asia regional office in Hong Kong. Sean Clarke, Walmart China’s current COO, has been named president and CEO of Walmart China. The changes are effective June 1.

"These promotions allow us to tap into the extraordinary talent we have in our company, leverage their unique strengths to benefit the entire organization, and ensure continuity of leadership in China and the region," said David Cheesewright, president and CEO of Walmart International. "While these moves highlight the internal talent we have at Walmart, they also show how we are able to build global talent to meet the needs of the company wherever we operate."

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