Burger King net income soars, revenue crashes

Miami — Burger King Worldwide Inc. reported impressive net income growth during the fourth quarter and full fiscal year 2013. Consolidated net income rose 37% year-over-year to $66.8 million from $48.6 million in the quarter, and almost doubled from $117.7 million to $223.7 million for the year.



Interestingly, consolidated revenues went in the opposite direction. For the quarter, revenues dropped 34% to $265.2 million from $404.5 million. During the fiscal year, revenues declined about 42% to $1.15 billion from $1.97 billion. Consolidated same-store sales grew 1.7% during the quarter and 1.5% during the year.



Burger King said fourth quarter total reported revenues declined from the prior year primarily due to the net refranchising of 360 company-owned restaurants in 2013.



“2013 was an important year for Burger King Worldwide as we grew our brand presence around the globe and made significant progress towards achieving our long-term strategic goals,” said Daniel Swartz, CEO of Burger King Worldwide. “We completed our global refranchising initiative, fundamentally transforming our business model and putting restaurant operations into the hands of our experienced franchisees. In North America, our focus on launching fewer, more impactful products helped drive improved sales trends as the year progressed. We grew comparable sales across all three international regions, opened 670 net new restaurants globally, and formed joint ventures in France and India to lay the foundation for continued expansion. We believe that we have the right team in place to capitalize on this success in 2014 and generate long-term value for franchisees and shareholders."