Burger King Worldwide Inc
Burger King's Whopper Will Cost $0.37 This Weekend—Here's the Catch
Burger King Partners With Robinhood for Crypto Giveaway
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).
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.
Why did Ackman’s Pershing Square exit General Growth Properties?
Last week, Pershing Square exited its entire stake in General Growth Properties.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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%.
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.
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%.
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.
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.
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.
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.
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.
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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.