Burger King Holdings Inc. Reports Operating Results (10-K)

Burger King Holdings Inc. (BKC, Financial) filed Annual Report for the period ended 2010-06-30.

Burger King Holdings Inc. has a market cap of $2.38 billion; its shares were traded at around $17.51 with a P/E ratio of 12.1 and P/S ratio of 0.9. The dividend yield of Burger King Holdings Inc. stocks is 1.4%.BKC is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, David Dreman of Dreman Value Management, George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

Burger King Holdings, Inc. (we or the Company) is a Delaware corporation formed on July 23, 2002. Our restaurant system includes restaurants owned by the Company and by franchisees. We are the worlds second largest fast food hamburger restaurant, or FFHR, chain as measured by the total number of restaurants and system-wide sales. As of June 30, 2010, we owned or franchised a total of 12,174 restaurants in 76 countries and U.S. territories, of which 1,387 restaurants were Company restaurants and 10,787 were owned by our franchisees. Of these restaurants, 7,258 or 60% were located in the United States and 4,916 or 40% were located in our international markets. Our restaurants feature flame-broiled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks and other affordably-priced food items. During our more than 50 years of operating history, we have developed a scalable and cost-efficient quick service hamburger restaurant model that offers customers fast food at affordable prices.

We operate in the FFHR category of the quick service restaurant, or QSR, segment of the restaurant industry. In the United States, the QSR segment is the largest segment of the restaurant industry and has demonstrated steady growth over a long period of time. According to The NPD Group, Inc., which prepares and disseminates CREST data, QSR sales have grown at an annual rate of 3% over the past 10 years, totaling approximately $230.5 billion for the 12-month period ended May 2010 and are projected to increase at an annual rate of 3% between 2010 and 2015.

According to The NPD Group, Inc., the FFHR category is the largest category in the QSR segment, generating sales of over $62.6 billion in the United States for the 12-month period ended May 30, 2010, representing 27% of total QSR sales. According to The NPD Group, Inc., sales for the FFHR category are expected to increase at an average rate of 5% per year over the next five years. For the 12-month period ended May 2010, Burger King accounted for approximately 14% of total FFHR sales in the United States.

We believe the QSR segment is generally less vulnerable to economic downturns than the casual dining segment, due to the value that QSRs deliver to consumers, as well as some trading to value by customers from other restaurant industry segments during adverse economic conditions, as they seek to preserve the away from home dining experience on tighter budgets. In the current economic environment, however, QSR traffic in the United States decreased 1% and sales decreased 0.5% for the quarter ended May 2010, while the FFHR category declined at an annual rate of 0.5% in terms of sales during the same period. By comparison, for the quarter ended May 2010 visits to casual dining chains decreased 3% and to family dining chains decreased 3% while overall U.S. restaurant traffic decreased 1%.

Company restaurants. Our Company restaurants in the United States and Canada generated $1.3 billion in revenues in fiscal 2010, or 76% of our total United States and Canada revenues and 52% of our total worldwide revenues. Our Company restaurants in the United States and Canada account for 71% of Company restaurants worldwide.

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