Burger King Holdings, Inc. Reports First Quarter 2012 Results

Miami, FL  (RestaurantNews.com)  Burger King Holdings, Inc. (the “Company”) today reported its financial results for the quarter ended March 31, 2012.

“We are off to a strong start in 2012, and are making terrific progress on the execution of our core global business strategies, with system-wide comparable sales up 4.6 percent and adjusted EBITDA up 20 percent year over year,” said Daniel Schwartz, chief financial officer. “We are particularly pleased with our performance in North America, which delivered its best comparable sales performance in more than eight quarters. Our strong performance in key international markets underscores the significant potential of our global portfolio. We are excited to build on the quarter’s strong momentum as we continue to deliver on our strategic priorities.”

Summary of First Quarter Results:

• System-wide comparable sales grew by 4.6 percent compared to the same quarter in the prior year, with U.S. and Canada, Europe, Middle East and Africa (“EMEA”) and Latin America and Caribbean (“LAC”) driving the positive results. Quarter to date comparable sales reflect the benefit from an extra day due to leap year;
• Net restaurant growth (“NRG”) of 22 restaurants, compared to 49 restaurants in the prior year period, due to the timing of certain restaurant closures in EMEA and APAC;
• Adjusted EBITDA increased by 20 percent to $143.4 million, compared to the prior year due to improved results in all of our operating segments;
• Adjusted net income increased by 74 percent to $48.0 million, compared to the prior year;
• Management general and administrative (“Management G&A”) expenses decreased by 4 percent, compared to the prior year. Total selling, general and administrative expenses decreased by 7 percent, compared to the prior year, reflecting the completion of various restructurings and projects initiated in the prior year; and
• Net income was $25.0 million, compared to a loss of $5.9 million for the prior year period. The improvement is primarily due to improved results in all of our operating segments, decreases in costs due to the completion of various restructurings and projects in the prior year and a decrease in the loss on early extinguishment of debt related to our debt refinancing in February 2011.

Mr. Schwartz continued, “Looking forward, we remain focused on our core global business strategies, including refranchising our company-owned restaurants and expanding our global consumer base. In North America, we continue to execute on our four pillar strategy of Marketing Communications, Menu, Image and Operations. At quarter end, we launched 13 new menu items to expand our menu offerings and rolled out a national advertising campaign to highlight both the quality and range of these offerings. Internationally, we remain dedicated to aggressively expanding our global footprint through franchisee development in key international markets. As we continue to execute on these strategies, we expect to grow adjusted EBITDA and free cash flow to provide for the long term growth of the brand.”

Investor Conference Call

The Company will host an investor conference call and webcast at 11:00 a.m. EDT, Wednesday, May 9, 2012, to review financial results for the quarter ended March 31, 2012. During the call, Chief Financial Officer Daniel Schwartz, President of North America Steven Wiborg, and Controller and Chief Accounting Officer Jackie Friesner will discuss the company’s results.

The earnings call will be broadcast live via the Company’s investor relations website at http://investor.bk.com and will be available for replay for 30 days.

About Burger King Holdings, Inc.

Founded in 1954, BURGER KING^® is the second largest fast food hamburger chain in the world. The original HOME OF THE WHOPPER^®, the BURGER KING^® system operates in over 12,500 locations serving over 11 million guests daily in 82 countries and territories worldwide. Approximately 90 percent of BURGER KING^® restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Burger King Corp. is privately-held by 3G Capital, a multi-billion dollar, global investment firm focused on long-term value creation. For more information on 3G Capital, please go to http://3g-capital.com. To learn more about Burger King Corp., please visit the company’s website at www.bk.com or follow us on Facebook and Twitter.

Forward-Looking Statements

This press release contains certain forward-looking statements, which reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. These forward-looking statements include statements about the Company’s expectations and belief regarding the potential of its global portfolio and its ability to build on the quarter’s momentum and continue to deliver on its strategic priorities; its expectations and belief regarding its ability to remain focused on its core business strategies; its expectations and belief regarding its ability to continue to execute on its four pillar strategy in North America; its expectations and belief regarding its ability to aggressively expand its global footprint through franchisee development in key international markets; and its expectations and belief regarding its ability to grow adjusted EBITDA and free cash flow to provide for the long-term growth of the Brand. The factors that could cause actual results to differ materially from the Company’s expectations are detailed in the Company’s filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K, including the following: risks related to the Company’s ability to successfully implement its domestic and international growth strategy and restaurant reimaging initiative and risks related to the effectiveness of its marketing and advertising programs.

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