Burger King Worldwide Inc

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  • uploads///hertz
    Fund Managers

    Tiger Global reduces position in Hertz Global Holdings

    Hertz Global Holdings owes in excess of $700,000 in unpaid taxes as well as interest and penalties.

    By Adam Rogers
  • uploads///burger king
    Fund Managers

    Tiger Global Management exits position in Burger King Worldwide

    Tiger Global Management has sold shares worth over $220 million in Burger King Worldwide, which represented 2.93% of the fund’s total portfolio in the third quarter.

    By Adam Rogers
  • uploads///top
    Fund Managers

    Highlights of Tiger Global Management’s 4Q14 13F holdings

    Tiger Global Management is a US-based hedge fund founded in 2001 that invests in public equity as well as fixed income markets.

    By Adam Rogers
  • uploads///Cost Analysis
    Company & Industry Overviews

    Analyzing Texas Roadhouse’s Key Operating Costs

    Operating costs include rent, utilities, advertising, property tax, repairs and maintenance, credit card fees, and supplies. These costs have been falling.

    By Adam Jones
  • uploads///MCD filing
    Consumer

    Speculation that Ackman is urging a McDonald’s REIT spinoff

    Even if a McDonald’s REIT spinoff is not in the cards, an activist investor who might push for a restructuring could be the catalyst McDonald’s needs.

    By Samantha Nielson
  • uploads///MCD peers
    Consumer

    Shares up for McDonald’s stock on rumors of Ackman’s interest

    Ackman’s fund owned a stake in McDonald’s from 2005 to 2007. He urged McDonald’s to restructure itself. McDonald’s stock almost doubled during that time.

    By Samantha Nielson
  • uploads///HLF put options
    Consumer

    Limited risk of Herbalife stock price increase, Ackman believes

    Ackman believes there’s little chance of an Herbalife stock price increase and said Herbalife’s stock price is down almost 50%.

    By Samantha Nielson
  • uploads///Starbucks Stores
    Company & Industry Overviews

    Starbucks Adds 1,600 Units in 2014

    In the fiscal year ending in 2014, SBUX added 1,599 units. This was 8% unit growth year-over-year, or YoY. The most units were added in the China and Asia-Pacific, or CAP, market.

    By Adam Jones
  • uploads///Chart Title
    Company & Industry Overviews

    Starbucks Gets Help From Its Rewards Program

    One of the ways a customer can become a My Starbucks Rewards member is by using the My Starbucks Rewards card. The card is available at the checkout counter.

    By Adam Jones
  • uploads///Food Inflation
    Macroeconomic Analysis

    Food Inflation On Meat Eases In November

    Food inflation Food cost is one of the important operating costs for a restaurant. In the McDonald’s (MCD) overview series, we learned that food and paper costs can be as much as 34% of sales. Food inflation can cause a restaurant’s operating margins to squeeze, but a restaurant like Chipotle Mexican Grill (CMG) can adjust its […]

    By Adam Jones
  • uploads///NRAs Current Situation vs Expectations on CapEx
    Company & Industry Overviews

    Six-Month Expansion Outlook Positive for Restaurant Operators

    The six-month outlook for capital expenditure plans as of October 2014 was 101.8, which has been above 100 levels for the past 12 months.

    By Adam Jones
  • uploads///THI
    Consumer

    Farallon Capital initiates position in Tim Hortons

    Farallon Capital Management started a new position in Tim Hortons Inc. (THI) during the third quarter of 2014. The position accounted for 2.62% of the fund’s 3Q14 portfolio.

    By Diana Key
  • uploads///MCD Menu
    Company & Industry Overviews

    McDonald’s List Of Initiatives That Will Bring A Turnaround

    McDonald’s list of initiatives includes simplifying its menu and possibly offering locally relevant menu items. This could be quite a gamble.

    By Adam Jones
  • uploads///Monthly Same Store Sales
    Company & Industry Overviews

    Downward trend: McDonald’s November Same-Store Sales

    McDonald’s November same-store sales indicate a continued slide in all segments. Tensions between Russia and Ukraine are partially to blame.

    By Adam Jones
  • uploads///Pershing
    Financials

    Pershing Square takes on Zoetis, adds to Canadian Pacific in 3Q14

    Activist hedge fund manager William Ackman’s Pershing Square Capital Holdings filed its third quarter 13F last month. The fund’s year-to-date returns as of October 31, 2014, net of fees, was 35.0%.

    By Samantha Nielson
  • Earnings Report

    Tim Hortons’ year-to-date returns as of November 2014

    As of November 2014, Tim Hortons’ (THI) year-to-date (or YTD) returns were 54.3%. The S&P 500 had returns of 10.9%. The restaurant industry had returns of 9.1%.

    By Adam Jones
  • Earnings Report

    Tim Hortons faced a higher effective tax rate in 3Q14

    THI had an effective tax rate of 34% in the third quarter. Its tax rate increased from 28.3% in the same quarter last year. The increase was due to the company’s favorable tax impact last year.

    By Adam Jones
  • Company & Industry Overviews

    Why restaurants are remodeling their stores

    Several restaurants are focusing on changing their restaurants’ images by remodeling their existing stores. For example, Burger King’s (BKW) already re-imaged stores have boosted sales by 10% to 15%.

    By Adam Jones
  • Company & Industry Overviews

    The state of fast-food restaurants

    Fast-food restaurants, as the name suggests, specialize in serving food they can prepare and serve quickly. The fast-food industry has reached its mature stage in the United States, and several fast-food chains are already focusing on international expansion.

    By Adam Jones
  • Company & Industry Overviews

    What is a limited-service restaurant?

    Limited-service restaurants can be classified into fast food or quick service, fast-casual restaurants, pizza restaurants, and cafés.

    By Adam Jones
  • Company & Industry Overviews

    Pilgrim’s Pride Corporation’s three customer categories

    Pilgrim’s customer base is spread across 100 countries, including the US and Mexico, which together contributed ~92% of the company’s revenues as of 2013 year-end.

    By Adam Jones
  • Consumer

    Why fuel prices affect restaurants

    Higher fuel costs put pressure on operating costs, and can squeeze profit margins. The demand side also takes a hit. When gas prices are high, consumers tend to economize on transit by eliminating unnecessary trips.

    By Adam Jones
  • Consumer

    Rising food costs hit the restaurant industry

    In September 2014, the price index for meat stood at 267.7 compared to 264.3 in August. This index has been increasing sharply since the beginning of 2014.

    By Adam Jones
  • Consumer

    Restaurant industry capital expenditure trends

    The six-month outlook for capital expenditures as of August 2014 was 100.7, and has been above the 100 level for the past twelve months. If this is true, the restaurant industry is on an uptrend.

    By Adam Jones
  • Consumer

    Why Burger King’s revenues increased in 3Q14

    BKW reported revenues of $278.9 million in the third quarter. Revenues grew 1.4% year-over-year (or YoY) from $275.1 million—compared to the same quarter last year.

    By Adam Jones
  • Consumer

    Why Burger King has long-term initiatives

    Management stated that Burger King is on track to change the image of 40% of its stores in the US by the end of 2015. it’s on track to achieve this target.

    By Adam Jones
  • Consumer

    Why Burger King brought back Chicken Fries

    During the quarter, Burger King relaunched Chicken Fries. The item was suspended in 2012. It had been replaced with other chicken items.

    By Adam Jones
  • Consumer

    Why Dunkin’ Brands saw strong unit growth in 3Q14

    Baskin-Robbins U.S. added six new restaurants during the quarter compared to one in the corresponding quarter a year ago. Meanwhile,it added 61 net new restaurants internationally compared to 73 over the same period a year ago.

    By Adam Jones
  • Consumer

    Must-know: McDonald’s year to date performance

    As of October 25, 2014, McDonald’s (MCD) year-to-date (or YTD) return was -2.8%—compared to returns of 8.3% on the S&P 500 Index and 19.3% on the casual restaurant segment.

    By Adam Jones
  • Consumer

    Why McDonald’s net profit and margins declined in 3Q14

    McDonald’s (MCD) reported a net income of $1.07 billion. It declined 30%—compared to $1.5 billion in 3Q13. The net profit margins were also down to 15.3%—from 20.8% in 3Q13.

    By Adam Jones
  • Consumer

    Why McDonald’s took a big hit in China

    China is part of the APMEA region. Same-store sales were down 22.7%. Approximately 5,000 restaurants were affected when McDonald’s suspended its meat supplier.

    By Adam Jones
  • Consumer

    Why McDonald’s same-store sales declined

    McDonald’s (MCD) revenues declined 4.5% YoY. Revenues in the restaurant industry are mainly driven by same-store sales and unit growth. The global same-stores sales were down to -3.3% YoY.

    By Adam Jones
  • Consumer

    Why McDonald’s 3Q14 earnings were disappointing

    In the third quarter earnings, McDonald’s reported a diluted EPS of $1.09. It declined by 28%—compared to an EPS of $1.52 in the same quarter last year.

    By Adam Jones
  • Consumer

    Must-know: Chipotle Mexican Grill’s food costs

    CMG reported $372 million in food costs in 3Q14. Food costs accounted for 34.3% of the revenue. It was an increase of 70 basis points year-over-year (or YoY).

    By Adam Jones
  • Consumer

    Why Chipotle has two new concept restaurants

    ShopHouse serves southeast Asian cuisine. It uses the same format as Chipotle Mexican Grill (CMG). Customers will see a resemblance in the assembly line style.

    By Adam Jones
  • Consumer

    Domino’s management guidance on food costs, capex, and more

    Management anticipates the effective tax rate to be in the range of 37% to 38% for the “foreseeable future.” Corporate tax rates in the U.S. are high, and force some companies to move their headquarters to countries offering lower tax rates.

    By Adam Jones
  • Consumer

    Why savings rate and disposable income impact restaurants

    The savings rate is the amount expressed as a percentage of disposable income that hasn’t been spent by a consumer.

    By Adam Jones
  • Consumer

    Why retail food service sales are restaurant indicators

    The restaurant industry is a part of the Consumer Discretionary sector. This sector does well when the economy is expanding. It doesn’t do well when the economy is contracting.

    By Adam Jones
  • Consumer

    Why you should watch Yum! Brands’ stock returns over 5 years

    At the end of 2013, Yum! Brands had a total debt of $2.99 billion. The debt or equity ratio is calculated as total debt over total equity.

    By Adam Jones
  • Consumer

    Overview: Yum! Brands’ costs of operations

    In a company-owned restaurant, Yum! Brands (YUM) keeps all the revenues. However, it also has the cost of running the restaurant. Any changes in these costs can impact operating profit margins.

    By Adam Jones
  • Consumer

    Must-know: Yum! Brands’ Taco Bell business

    Taco Bell opened in 1962. It’s a fast food or quick service restaurant. About 15% of Yum! Brands’ (YUM) total restaurant units were in the Taco Bell division at the end of 2013.

    By Adam Jones
  • Consumer

    Why Yum! Brands’ division in China is important

    Yum! Brands’ (YUM) division in China includes its business in mainland China. It’s the combined revenues from all the brands—KFC, Pizza Hut, East Dawning, and the Little Sheep.

    By Adam Jones
  • Consumer

    Must-know: Yum! Brands’ segments by business models

    For six months ending June 2014, China’s division reported revenue of $3 billion, or 52% of Yum! revenues. China only represents 15% of the more than 40,000 Yum! restaurant units.

    By Adam Jones
  • Consumer

    Why is Yum! Brands focused on China’s market?

    Yum! Brands China only had ~6,300 restaurants, or 15% of total restaurant units, as of June 2014. However, it contributed to a major share of the revenues.

    By Adam Jones
  • Consumer

    Why Yum! Brands’ restaurants have grown globally

    Yum! Brands plans to open new locations in certain countries. Growing restaurant units is the first step to capturing customers in a market.

    By Adam Jones
  • Consumer

    Must-know: Why Chili’s same-store sales increased

    For the restaurant industry, one of the key drivers is same-store sales earnings. Brinker International (EAT) reported a same-store sales growth of 2.5% for Chili’s—compared to -0.6% in the same quarter last year.

    By Adam Jones
  • Consumer

    Darden’s food costs, labor costs, and selling and general expenses

    Darden Restaurants’ (DRI) food and beverage costs were 1.8% higher as a percentage of sales compared to the corresponding quarter a year ago. Higher beef, seafood, and dairy costs primarily drove up the food costs. Food costs also increased due to core menu enhancements made last year by the company.

    By Adam Jones
  • Consumer

    Why leveraged loan deals are seeing a strong calendar

    Leveraged loans are commercial loans. They’re provided by a group of lenders. The loan is usually secured. It’s structured, arranged, and administered by investment and commercial banks—the arrangers. An example of an arranger is JPMorgan (JPM). Then, the loan is syndicated to other banks or institutional investors.

    By Phalguni Soni
  • Consumer

    Why Panera Bread Company desperately needs to innovate its menu

    People can have many reasons to visit a restaurant. But one of the most critical reasons is the menu. With customers’ constantly changing tastes and preferences, a restaurant needs to innovate and be in sync with its demographic.

    By Adam Jones
  • Consumer

    Must-know: What strategies are driving Dunkin’ Brands?

    Same-store sales are driven by two components—transaction and traffic. Transaction is driven by pricing and products offered to the customer—or mix. For Dunkin’ Brands (DNKN), transaction contributed to more than half of same-store sales growth. To increase the traffic, the company introduced new items and offers.

    By Adam Jones
  • Consumer

    Must-know: The key drivers in the leveraged loans markets

    A leveraged loan is a commercial loan provided by a group of lenders. Typically secured, the loan is structured, arranged, and administered by investment and commercial banks (or the arrangers) like Goldman Sachs (GS).

    By Phalguni Soni
  • Consumer

    Tim Hortons’ effective tax rates and the Burger King merger

    Burger King (BKW) recently announced that it will acquire Tim Hortons (THI). In our acquisition series, we explained that this deal was structured as a tax inversion deal. Let’s take a look at what Tim Hortons’ effective tax rate has been over years.

    By Adam Jones
  • Consumer

    Why Tim Hortons introduced a mobile app and loyalty cards

    Along with introducing new products like those we discussed in the previous part of this series, Tim Hortons (THI) is also testing different revenue channels and payment methods.

    By Adam Jones
  • Consumer

    Why Tim Hortons’ same-store sales grew through menu innovation

    Restaurants often introduce new products in their menu and use promotional campaigns to drive customers into the restaurants.

    By Adam Jones
  • Consumer

    Why Tim Hortons’ same-store sales are an important value driver

    Tim Hortons (THI) had a total of 4,546 restaurants as of the second quarter’s end. About 79%, or 3,630, of Tim Hortons restaurants are in Canada. About 19%, or 866, restaurants are in the U.S.

    By Adam Jones
  • Consumer

    Why Burger King shares traded sideways after its earnings report

    Burger King (BKW) reported its earnings on August 1 before the market opened. After the market opened, shares began trading at $26.7—which was 2% up from the previous day’s closing of $26.3.

    By Adam Jones
  • Consumer

    Why Burger King’s restaurant visit program is so important

    Burger King (BKW) opened a net of 131 new restaurants in the second quarter, making for a total net new restaurant count of 682 restaurants in the past 12 months.

    By Adam Jones
  • Consumer

    Why Burger King is improving its traffic through product innovation

    Burger King (BKW) introduced premium products internationally that should complement its menu. It launched a Hashbrown Whopper in Korea, a Barbecue Bacon Whopper in the U.S., and a Mexican Whopper in Spain.

    By Adam Jones
  • Consumer

    Burger King’s effective tax rates and the Tim Hortons acquisition

    Burger King’s (BKW) acquisition of Tim Hortons (THI) will make it the third-largest restaurant chain in terms of market capitalization, after McDonald’s (MCD) and Yum! Brands (YUM).

    By Adam Jones
  • Consumer

    Burger King’s 2nd quarter 2014 tax rates and profit margins

    Net income is used to calculate earnings per share (net income over weighted average shares outstanding). It improves based on an improved cost metric. Let’s see how Burger King’s (BKW) net income has done over the year.

    By Adam Jones
  • Consumer

    Why Burger King’s operating expenses are declining

    Burger King’s (BKW) improvement in operating margins was aided by a reduction in operating expenses as a percentage of sales.

    By Adam Jones
  • Consumer

    Analyzing Burger King’s shifting business model focus in 2Q14

    Franchise revenues include royalties and franchise fees. Royalties are calculated as a percentage of franchise restaurant revenues, which are driven by same-store sales.

    By Adam Jones
  • Consumer

    Must-know: Analyzing Burger King’s 2Q14 performance by segment

    Burger King Worldwide, Inc., (BKW) operates over 13,000 restaurants in 100 countries and reports its global income in four segments.

    By Adam Jones
  • Consumer

    Why investors should look at Burger King’s same-store sales first

    Same-store sales drive revenues. Burger King (BKW) reported global same-store sales growth of 1% in the second quarter.

    By Adam Jones
  • Consumer

    How Burger King is financing its Tim Hortons acquisition

    The Tim Hortons (THI) acquisition’s value of about $12.5 billion is more than Burger King’s (BKW) market capitalization of $10.9 billion as of August 26.

    By Adam Jones
  • Consumer

    Must-know: Management’s outlook for 2014 and beyond

    The management has given an operating profit margin guidance of more than 10% for 2014—due to the poor performance of Pizza Hut in the U.S., the management has cut its full-year earnings guidance.

    By Adam Jones
  • Consumer

    Why management is focusing on the breakfast menu for Taco Bell

    The breakfast menu was introduced in a Taco Bell in March, 2014—as the quarter ended in June, 2014, the breakfast menu was introduced in 20% of the locations, which was 229 restaurants.

    By Adam Jones
  • Consumer

    Must-know: The costs of McDonalds’ key metrics

    Franchise margins declined by 0.6% to 82.2% in 2Q14 due to an increase in rents and depreciation expense along with franchising—company operated margins also declined by 0.6% to 17.1% over the same period.

    By Adam Jones
  • Consumer

    Must-know: Key metrics in McDonalds’ quarterly earnings

    McDonald’s reported flat global comparable sales and negative comparable guest count for 2Q14, which is concerning from a long-term income growth perspective.

    By Adam Jones
  • uploads///GGPH
    Basic Materials

    Why did Ackman’s Pershing Square exit General Growth Properties?

    Last week, Pershing Square exited its entire stake in General Growth Properties.

    By Samantha Nielson
  • uploads///PGH
    Basic Materials

    Why did Ackman trim Pershing Square’s Procter & Gamble stake?

    Pershing Square has sold off most of its stake in Procter & Gamble the size of the position reduced to 739,605 last quarter.

    By Samantha Nielson
  • uploads///APDH
    Basic Materials

    Why Pershing Square increased its stake in Air Products and Chemicals

    Pershing Square increased its position in Air Products and Chemicals, Inc. from 21.31% in 3Q 2013 to 27.91% in 4Q 2013.

    By Samantha Nielson
  • uploads///PS Q
    Basic Materials

    Pershing Square Capital Management’s positions in 4Q 2013

    Bill Ackman’s Pershing Square Capital Management did not initiate new stakes in 4Q 2013.

    By Samantha Nielson
  • uploads///PAH
    Basic Materials

    Why Pershing Square bought stake in Platform Specialty Products

    In a 13G filed last week, Bill Ackman’s Pershing Square disclosed a position in Platform Specialty Products Corporation (PAH).

    By Samantha Nielson
  • uploads///Hourly Worker Turnover
    Consumer

    Why time favors fast food business owners during strikes

    The restaurant industry’s high employee turnover also makes it harder for fast food companies to unionize. Even within the restaurant industry, quick service shows the highest turnover.

    By Xun Yao Chen
  • uploads///Fast Food Worker Demographics
    Consumer

    Must-know: Majority of fast food workers “not” above 25 years old

    Why the unionization of all fast food workers, which would increase the bargaining power of employees and possibly lead to higher wages, in quite unlikely.

    By Xun Yao Chen
  • uploads///McDonalds Hypothetical Wage Estimate    e
    Consumer

    Why do most workers at McDonald’s work part-time?

    Part-time work is most likely an industry-wide characteristic within the food retail business.

    By Xun Yao Chen
  • uploads///Fast Food Industry Cost Breakdown    e
    Consumer

    Why fast food business owners can’t offer $15 per hour

    From a business perspective, restaurant owners can’t possibly increase wages to $15 per hour.

    By Xun Yao Chen
  • uploads///US Inflation Adjusted Minimum Wage    e
    Consumer

    Must-know: Minimum wage of $7.25 isn’t as low as people may think

    A slight increase in wages can erase profits for these companies. To protect profits, prices will have to rise.

    By Xun Yao Chen
  • uploads///Federal Minimum Wage Rate    e
    Consumer

    Walkouts and strikes are gaining momentum beyond McDonald’s (MCD)

    Nationwide walkouts appear to be gaining momentum, calling for action to increase the federal minimum wage that has remained stagnant since 2009.

    By Xun Yao Chen
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