We evaluate our restaurants and assess our business based on the following operating metrics.

System-wide sales growth refers to the change in sales at all Company-owned and franchise restaurants in one period from the same period in the prior year. System-wide comparable sales growth refers to the change in restaurant sales in one period from the same prior year period for restaurants that have been open for thirteen months or longer. Comparable sales and sales growth are measured on a constant currency basis, which means that results exclude the effect of foreign currency translation and are calculated by translating current year results at prior year exchange rates. We analyze key operating metrics on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements (“FX Impact”).

Franchise sales represent sales at all franchised restaurants and are revenues to our franchisees. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales. Average restaurant sales refer to the total sales divided by total store months for all Company-owned and franchise restaurants open during the period. Net refranchisings refer to sales of Company-owned restaurants to franchisees, net of acquisitions of franchise restaurants by us.
Consolidated BKW    
 
 
 

Key Business Metrics
 
Three Months Ended June 30,
2012 2011
 
System-wide sales growth 6.4 % 0.4 %
Franchise sales $ 3,636.3 $ 3,449.0
Comparable sales growth
Company 5.1 % (1.6 )%
Franchise 4.3 % (2.2 )%
System 4.4 % (2.2 )%
Average restaurant sales (in thousands) $ 319.1 $ 314.5
Net Restaurant Growth (NRG)
Company (3 ) (3 )
Franchise 73 38
System 70 35
Net refranchisings 464 6
Restaurant counts at period end
Company 818 1,330
Franchise 11,786 11,006
System 12,604 12,336
CRM % 11.6 % 11.9 %
 
U.S. & Canada          
 
 
 

Key Business Metrics
 

Three Months Ended June 30,
2012 2011
Favorable / (Unfavorable)
System-wide sales growth 3.9 % (5.5 )%
Comparable sales growth
Company 4.5 % (3.7 )%
Franchise 4.4 % (5.5 )%
System 4.4 % (5.3 )%
NRG
Company (2 ) (1 )
Franchise (17 ) (17 )
System (19 ) (18 )
Net refranchisings 386 2
Restaurant counts at period end
Company 546 978
Franchise 6,923 6,550
System 7,469 7,528
 
 
Three Months Ended June 30, Variance
2012 2011 Favorable / (Unfavorable)
 
Company:
Company restaurant revenues $ 242.4 $ 302.1 $ (59.7 )
CRM 29.3 37.9 (8.6 )
CRM % 12.1 % 12.5 % (0.4 )%
Company restaurant expenses as a % of Company

restaurant revenue:
Food and paper 33.7 % 32.8 % (0.9 )%
Payroll and benefits 29.9 % 30.0 % 0.1 %
Depreciation and amortization 5.5 % 5.6 % 0.1 %
Other occupancy and operating 18.8 % 19.0 % 0.2 %
 
Franchise:
Franchise and property revenues $ 115.3 $ 102.3 $ 13.0
Franchise and property expenses 21.7 16.3 (5.4 )
Franchise sales 2,052.3 1,910.6 141.7
Segment income 128.5 122.0 6.5
Segment margin 35.9 % 30.2 % 5.7 %
 
EMEA          
 
 
 

Key Business Metrics
 
 
Three Months Ended June 30,
2012 2011
System-wide sales growth 12.7 % 3.6 %
Comparable sales growth
Company 6.2 % 4.9 %
Franchise 3.1 % 3.1 %
System 3.3 % 3.2 %
NRG
Company - (1 )
Franchise 45 32
System 45 31
Net refranchisings 56 4
Restaurant counts at period end
Company 134 193
Franchise 2,827 2,603
System 2,961 2,796
 
 
Three Months Ended June 30, Variance
2012 2011 Favorable / (Unfavorable)
 
Company:
Company restaurant revenues $ 67.6 $ 81.6 $ (14.0 )
CRM 7.3 7.7 (0.4 )
CRM % 10.8 % 9.4 %

1.4

%
Company restaurant expenses as a % of Company

restaurant revenue:
Food and paper 30.3 % 28.9 % (1.4 )%
Payroll and benefits 32.7 % 32.1 % (0.6 )%
Depreciation and amortization 3.6 % 3.7 % 0.1 %
Other occupancy and operating 22.6 % 25.9 % 3.3 %
 
Franchise:
Franchise and property revenues $ 51.6 $ 49.3 $ 2.3
Franchise and property expenses 6.6 6.3 (0.3 )
Franchise sales 935.1 922.7 12.4
Segment income 42.8 35.3 7.5
Segment margin 35.9 % 27.0 % 8.9 %
 
LAC          
 
 
 

Key Business Metrics
 
 
Three Months Ended June 30,
2012 2011
System-wide sales growth 9.4 % 16.6 %
Comparable sales growth
Company 5.8 % 4.6 %
Franchise 10.8 % 6.9 %
System 10.5 % 6.8 %
NRG
Company - -
Franchise 27 15
System 27 15
Net refranchisings - -
Restaurant counts at period end
Company 97 97
Franchise 1,158 1,068
System 1,255 1,165
 
 
Three Months Ended June 30, Variance
2012 2011 Favorable / (Unfavorable)
 
Company:
Company restaurant revenues $ 16.1 $ 17.6 $ (1.5 )
CRM 2.8 3.4 (0.6 )
CRM % 17.4 % 19.3 % (1.9 )%
Company restaurant expenses as a % of Company

restaurant revenue:
Food and paper 39.1 % 37.5 % (1.6 )%
Payroll and benefits 11.8 % 11.9 % 0.1 %
Depreciation and amortization 9.3 % 9.7 % 0.4 %
Other occupancy and operating 22.4 % 21.6 % (0.8 )%
 
Franchise:
Franchise and property revenues $ 16.2 $ 14.6 $ 1.6
Franchise and property expenses (0.2 ) - 0.2
Franchise sales 323.7 295.3 28.4
Segment income 17.1 14.5 2.6
Segment margin 52.9 % 45.0 % 7.9 %
 
APAC          
 
 
 

Key Business Metrics
 
 
Three Months Ended June 30,
2012 2011
System-wide sales growth 2.1 % 19.4 %
Comparable sales growth
Company 8.6 % 7.0 %
Franchise 2.0 % (0.9)%
System 2.1 % (0.6)%
NRG
Company (1) (1)
Franchise 18 8
System 17 7
Net refranchisings 22 -
Restaurant counts at period end
Company 41 62
Franchise 878 785
System 919 847
 
 
Three Months Ended June 30, Variance
2012 2011 Favorable / (Unfavorable)
 
Company:
Company restaurant revenues $ 19.8 $ 17.7 $ 2.1
CRM 0.8 0.8 -
CRM % 4.0 % 4.5 % (0.5)%
Company restaurant expenses as a % of Company

restaurant revenue:
Food and paper 34.3% 33.3% (1.0)%
Payroll and benefits 18.2% 18.1% (0.1)%
Depreciation and amortization 6.6% 6.2% (0.4)%
Other occupancy and operating 36.9% 37.9% 1.0 %
 
Franchise:
Franchise and property revenues $ 11.8 $ 10.2 $ 1.6
Franchise and property expenses 0.4 0.6 0.2
Franchise sales 325.2 320.4 4.8
Segment income 11.0 6.7 4.3
Segment margin 34.8% 24.0 % 10.8 %
 

Organic growth in Revenue and Adjusted EBITDA for the Three Months Ended June 30, 2012

(Unaudited)
                   
$ in millions
Refran. Adjusted FX
Actual Q2 '12 vs. Q2 '11 Impact Q2 '11 Impact Organic Growth
Q2 '12 Q2 '11 $ % $ $ $ $ %
Calculation: A B C A+C=D E B-C-E=F F/D

Revenue
North America $ 357.7 $ 404.5 ($46.8 ) (11.6 %) ($57.7 ) $ 346.8 ($1.6 ) $ 12.5 3.6 %
EMEA $ 119.2 $ 131.0 ($11.8 ) (9.0 %) ($8.3 ) $ 122.7 ($13.2 ) $ 9.7 7.9 %
LAC $ 32.3 $ 32.1 $ 0.2 0.6 % - $ 32.1 ($2.3 ) $ 2.5 7.8 %
APAC $ 31.6   $ 27.8   $ 3.8   13.7 %   -   $ 27.8   ($0.2 ) $ 4.0 14.4 %
Consolidated $ 540.8 $ 595.4 ($54.6 ) (9.2 %) ($66.0 ) $ 529.4 ($17.3 ) $ 28.7 5.4 %
 

Adjusted EBITDA
North America $ 128.5 $ 122.0 $ 6.5 5.3 % ($1.7 ) $ 120.3 ($0.1 ) $ 8.3 6.9 %
EMEA $ 42.8 $ 35.3 $ 7.5 21.2 % $ 0.6 $ 35.9 ($4.6 ) $ 11.5 32.0 %
LAC $ 17.1 $ 14.5 $ 2.6 17.9 % - $ 14.5 ($0.3 ) $ 2.9 20.0 %
APAC $ 11.0 $ 6.7 $ 4.3 64.2 % - $ 6.7 - $ 4.3 64.2 %
Unallocated Management G&A   ($27.4 )   ($28.6 ) $ 1.2   (4.2 %)   -     ($28.6 ) -   $ 1.2 (4.2 %)
Consolidated $ 172.0 $ 149.9 $ 22.1 14.7 % ($1.1 ) $ 148.8 ($5.0 ) $ 28.2 19.0 %
 

BURGER KING Worldwide, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures

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