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Strategic analysis Burger King

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Strategic analysis Burger King
Strategic Hospitality Management
-University of West London-

Module Leader: Terry McCusker Student ID: 21239704

Business bits: Burger King
Burger King Worldwide Inc. reported the third quarter situation this morning.

What has happened to profits comparing to last year?
In the third quarter of this year, the reports are showing a profit of $68.2 million or 19% a share comparing to $6.6 million or 2% a share, an year earlier. Beside this, the per-share earnings rose from 17% to 23%.

What about the revenue?
As a result of the franchising many of our restaurants, the revenue fell to $275.1 million with 40% comparing to last year, but excluding the currency movements and the impact of franchising, the total revenue rose 8.1%.

So what can you tell me about the franchising decision?
Well, in the last year we franchised more than 500 restaurants. At this moment we have 74 company owned-restaurants, down from 595 in the prior year quarter. This decision was made in order to cut the costs and it really impacted on our overall results.

Did the franchising decision impact on all the regions in which Burger King Restaurants are opened?
Yes and no in the same time. While in the Asia Pacific region the sales rise with 3.7%, Africa and Middle East with 2.4% and in the Europe the store-sales are the same, in the Northern America the results fell with 0.3%.

What’s something new about Burger King?
Well, in addition to franchising, the chain is now focusing on acceleration the global development of new-restaurants, remodeling the already existing ones and on introducing new menu items like “Satisfries”, the lower fat French fries. The new item was just released late in the quarter, but along with a value menu, it helped sales turning from negative to positive in October.

Word count: 286

The comeback of “The King”

Burger King Worldwide, Inc. just announced a few days ago the report’s


Bibliography: BBC News Business (2013) Burger King profits up as costs fall [online]. Available at: http://www.bbc.co.uk/news/business-24713668 [Accessed 30 oct 2013] BBC News Business (2012) Burger King to open 1 000 restaurants in China [online] BBC News Business (2010) Burger King sold to buy-out firm for $3.26 bn [online]. Available at: http://www.bbc.co.uk/news/business-11168720 [Accesed 31 oct 2013] Burger King Website: History of the company [online] Gassparo, A. (2013) Cost cuts help Burger King. [online] Available at: http://search.proquest.com.ezproxy.uwl.ac.uk/docview/1346144364/abstract?accountid=14769 [Accessed 29 oct 2013] Grant, R
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