GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Burger King Worldwide Inc (MEX:BKW) » Definitions » Degree of Operating Leverage

Burger King Worldwide (MEX:BKW) Degree of Operating Leverage : 0.00 (As of Sep. 2014)


View and export this data going back to . Start your Free Trial

What is Burger King Worldwide Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Burger King Worldwide's Degree of Operating Leverage for the quarter that ended in Sep. 2014 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Burger King Worldwide's Degree of Operating Leverage or its related term are showing as below:

MEX:BKW's Degree of Operating Leverage is not ranked *
in the Restaurants industry.
Industry Median: 1.24
* Ranked among companies with meaningful Degree of Operating Leverage only.

Burger King Worldwide Degree of Operating Leverage Historical Data

The historical data trend for Burger King Worldwide's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Burger King Worldwide Degree of Operating Leverage Chart

Burger King Worldwide Annual Data
Trend Jun06 Jun07 Jun08 Jun09 Jun10 Dec11 Dec12 Dec13
Degree of Operating Leverage
Get a 7-Day Free Trial - - - - -

Burger King Worldwide Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Burger King Worldwide's Degree of Operating Leverage

For the Restaurants subindustry, Burger King Worldwide's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Burger King Worldwide's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Burger King Worldwide's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Burger King Worldwide's Degree of Operating Leverage falls into.


;
;

Burger King Worldwide Degree of Operating Leverage Calculation

Burger King Worldwide's Degree of Operating Leverage for the quarter that ended in Sep. 2014 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 5464.506 (Sep. 2014) / 6379.404 (Sep. 2013) - 1 )/( 13751.203 (Sep. 2014) / 16514.278 (Sep. 2013) - 1 )
=-0.1434/-0.1673
=0.86***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Burger King Worldwide  (MEX:BKW) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Burger King Worldwide Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Burger King Worldwide's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Burger King Worldwide Business Description

Traded in Other Exchanges
N/A
Address
Burger King Worldwide Inc is a Delaware corporation incorporated on April 2, 2012. The Company is a fast food hamburger restaurant. The Company through its subsidiaries franchises and operates fast food hamburger restaurants under the Burger King brand. The Company owned or franchised a total of approximately 13,667 restaurants in 97 countries and U.S. territories. The Company's restaurants are limited service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other affordably-priced food items. The Company operates in four geographical areas including the U.S. and Canada; Europe, the Middle East and Africa, or EMEA; Latin America and the Caribbean, or LAC; and Asia Pacific, or APAC. The Company's competitors include McDonald's Corporation, or McDonald's, and The Wendy's Company, or Wendy's, as well as regional hamburger restaurant chains, such as Carl's Jr., Jack in the Box and Sonic. The Company's manufacturing and distribution of food products, are subject to food safety regulations, including supervision by the U.S. Food and Drug Administration and its international equivalents, which govern the manufacture, labeling, packaging and safety of food.

Burger King Worldwide Headlines

No Headlines