Burger King Annual Report Project Yuchen Li ACG2021.
001
Burger King Holdings, Inc is the worlds second largest
fast food hamburger restaurant. In fiscal year 2009, because of adverse macroeconomic conditions, including higher unemployment, more customers eating at home, heavy discounting by other restaurant chains and the H1N1 flu pandemic, the sale growth is decrease than 2008. However, as Burger King carefully controlled their expenses, their revenues rose and net earning increased in 2009.
Link to 2009 Annual Report: http://www.mediantonline.com/0/000/166/708/HTML2/default.htm
John W. Chidsey, Chairman and CEO
Burger King Corporation., 5505 Blue Lagoon Drive
Miami, Florida 33126. Fiscal Year 2009 ended June 30, 2009 61% of restaurants are located in the United States and 39% restaurants are located in international markets.
Fastfood
Hamburgers French fries Soft drinks Whopper Chicken Desserts
Breakfast
Saoads
Independent Auditors KPMG LLP The auditors believe that the audit they
performed and the financial statements almost represented the financial situation of Burger King corporation in the fiscal year ended June 30, 2009
NYSE(U.S. Dollar) Most recent price of the companys common stock is
$23.87 Twelve month trading range of the companys common stock is $16.31-$23.92 Dividend per share for FY 2009 is $0.25. Above information is as of 09/26/2010 Burger Kings common stock as an investment is Sell or Hold, because according to the twelve month range, I believe it is almost reach the highest price it could be.
Burger is the second largest FFHR chain in the world
as measured by number of restaurant and system-wide sales right now. In their future plan, they intend to grow and strengthen their competitive position by enhancing the guest experience, expanding competitive hours operation, further enhancing restaurant margins by utilizing their market based pricing model to achieve optimal pricing in their markets, employing innovative marketing strategies and offer superior value and quality, and expanding their large international platform.
The auditors used the Single step format for Burger
Kings Income Statement.
Year
2008 2009
Gross Profit
$916.7M $893.7M
Income from Operation
$354.2M $339.4M
Net Income
$189.6M $200.1M
From 2008 to 2009, both Gross Profit and Income
from Operation decreased, but the Net Income increased.
Year
Assets=
Liabilities+
Stockholders Equity
2008
2009
$2686.5M
$2707.1M
$1842.0M
$1732.3M
$844.5M
$974.8M
In the Balance Sheet, from 2008 to 2009, the assets and stockholders equity are increased, but the liabilities is decreased. However, the most substantial increase is stockholders Equity, it increased $130.3 million.
Both two years net cash provided by operating
activities are greater than net income. The net cash used for investing activities decreased from $199.3 million to $242.0 million. Burger King purchased more properties and equipment in 2009. The companys primary source of financing is Borrowing under revolving credit facility and other. Cash has decreased over the past two years.
Revenue Recognition- Revenues include retail sales at
Company restaurants and franchise and property revenues Cash and Cash Equivalents- Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less and credit card receivables. Inventories- Inventories are stated at the lower of cost( first-in, first-out) or net realizable value, and consist primarily of restaurant food items and paper supplies. Inventories are included in prepaids and other current assets in the accompanying consolidated balance sheets.
Property and Equipment, net- Property and
equipment, net, owned by the Company are recorded at historical cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets.
Description of Business and Organization Summary of Significant Accounting Policies Stock-based Compensation Acquisitions, Closures and Dispositions Franchise Revenues Trade and Notes Receivable, Net Prepaids and Other Current Assets, Net Property and Equipment, Net Intangible Assets, Net and Goodwill Earnings Per Share Other Accrued Liabilities and Other Liabilities Long-Term Debt
Fair Value Measurements and Derivative Instruments Interest Expense Leases Stockholders Equity Pension and Post Retirement Medical Benefits Other Operating Expenses, Net Commitments and Contingencies Segment Reporting Quarterly Financial Data Subsequent Event
Year
Working Capital (decrease $59.7M) Current Ratio (decrease 0.12) Receivable Turnover (increase 1.2times) Average days sales uncollected (decrease 1.4times)
2009
$-111.7M 0.77 18.8 times 19.4 times
2008
$-52.0M 0.89 17.6 times 20.8 times
Inventory turnover 23.50 times (decrease 5.25 times)
28.75 times
Average days inventory on hand (increase 2.8 times)
15.53 times
12.73 times
Year Profit Margin (decrease 0.002) Asset turnover (increase 0.027) Return on assets (increase 0.003) Return on equity (decrease 0.005)
2009
0.077 0.941 0.074 0.220
2008
0.079 0.914 0.071 0.225
Year Debt to equity (decreased 0.403 times)
2009
1.778 times
2008
2.181 times
Year Price/earnings per share (decreased 0.92 times) Dividend yield (remain the same)
2009
16.13 times 0.01 times
2008
17.05times 0.01 times
http://www.wikinvest.com/stock/Burger_King_Holdin
gs_(BKC) http://www.mediantonline.com/0/000/166/708/HTM L2/burger_king-10k2009_0074.htm http://investor.bk.com/phoenix.zhtml?c=87140&p=iro l-stockquote http://en.wikipedia.org/wiki/Burger_King#Products http://www.dailyfinance.com/financials/burger-kingholdings-inc/bkc/nys/key-ratios http://www.advfn.com/p.php?pid=financials&symbol =NYSE%3ABKC
