Miami, FL-based hamburger restaurant chain
Burger King Worldwide, Inc.
) recently provided guidance for the first quarter of 2013.
Burger King projects that adjusted earnings will grow nearly
25% year on year to 17 cents per share in the first-quarter 2013,
higher by a cent than The Zacks Consensus Estimate.
Burger King also expects that sluggish economic condition will
cause its comparable restaurant sales (comps) to drop 1.5% during
the quarter. In addition, regionally, Burger King is expected to
witness a 3% decline in its comps in the U.S. and
Apart from the persistent global economic turmoil, peer
pressure and tough year-over-year comparisons led to the comps
decline in both the regions. However, in March, comps in the U.S.
and Canada registered a positive growth on the back of the
company's value offerings.
Burger King is focused on managing its capital efficiently. As
of Dec 31, 2012, Burger King had $546.7 million of consolidated
cash and cash equivalents. We believe that the company has
adequate cash to provide optimum shareholder value.
Hence, Burger King announced the approval of a new stock
repurchase program worth $200 million of its common stock. This
share buyback, which is to be conducted before May 31, 2016, will
be done through an open market repurchase agreement.
In addition, Burger King recently announced a 20% hike in its
quarterly cash dividend rate. The company will now pay a dividend
of 6 cents per share for first-quarter 2013, up a penny from the
The increased dividend will be paid on May 15, 2013 to
stockholders of record on May 1, 2013. The accretion from share
buybacks and increment in dividend is likely to inspire
investors' confidence in the stock.
During the fourth quarter of 2012, Burger King posted adjusted
earnings of 23 cents per share, up 58.8% year on year. However,
total revenues were down 30.3% year over year to $404.5 million
owing to refranchising and negative currency translation.
Burger King currently retains a Zacks Rank #2 (Buy). Another
Chuy's Holdings, Inc.
) recently declared its preliminary first-quarter 2013 sales
results. According to the results, net revenues inched up 24.5%
year on year to $46.7 million and comps spiked 2.3% year over
Other restaurateurs, which are expected to perform well,
Red Robin Gourmet Burgers Inc.
), both carrying a Zacks Rank #1 (Strong Buy).
BURGER KING WWD (BKW): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
CHUYS HOLDINGS (CHUY): Free Stock Analysis
RED ROBIN GOURM (RRGB): Free Stock Analysis
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