Burger King, Merck and Loews Release Earnings
Fast food hamburger chain Burger King Worldwide Inc. (NYE: BKW) posted third-quarter financials this morning for the period ended 30 September, 2013. The report shows that global comparable sales increased 0.9 percent and system wide sales increased 4.9 percent. Adjusted diluted EPS jumped 31.6 percent to $0.23 per share. Adjusted EBITDA grew 16.7 percent on an organic basis to $176 million. Adjusted EBITDA margin rose 2,822bps to 64 percent net restaurant growth of 133, which is a 111.1 percent increase from last year. BKW also reported that it increased its dividend from $0.06 per share in the third quarter to $0.07 per share for the fourth quarter.
BKW Chief Executive Officer, Daniel Schwartz commented, “Our positive momentum continued in the third quarter, as we delivered double-digit organic EBITDA growth and industry best-in-class margins. We grew comparable sales across all three international regions and opened 133 net new restaurants globally. In the U.S. and Canada, we launched SATISFRIES(TM), a first of its kind better-for-you French fry, which demonstrates our commitment to leading innovation in the QSR industry. We believe that new products like this, combined with our focus on improving operations will enhance the guest experience and drive increased restaurant profitability. Our exceptional franchisees, partners and employees are aligned to execute on our strategy and we expect to finish 2013 strong.”
Global healthcare firm Merck & Co., Inc. (NYSE: MRK) also released third-quarter earnings today. Earnings fell some 35 percent due to the company’s loss of exclusivity of the drug Singulair and restructuring of its research and development segment. Merck reported a profit of $1.12 billion, or $0.38 a share, down from $1.73 billion, or $0.56 a share, in 2012. Adjusted earnings were down at $0.92 from $0.95. Revenue dipped 4 percent to $11.03 billion and was down 2 percent exclusive of currency fluctuations.
“This quarter we delivered solid financial results, with strong contributions from our vaccine, immunology and HIV businesses, and effective cost management,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “We are improving productivity and focusing our R&D and commercial resources more precisely to enable our investments in the best opportunities for innovation and growth. We are encouraged that our combination hepatitis C regimen has joined our anti-PD-1 immunotherapy in being designated as a ‘breakthrough therapy’ by the FDA.”
Diversified holding company Loews Corporation (NYSE: L) saw net income for the 2013 third quarter of $282 million, or $0.73 per share, compared to $177 million, or $0.45 per share, in the same quarter in 2012. Net income for the nine months ended September 30, 2013 was $793 million, or $2.03 per share, compared to $600 million, or $1.51 per share, in the prior year period. In addition, during the three and nine months ended September 30, 2013, the company purchased 0.9 million and 4.9 million shares of its common stock at cost of $41 million and $218 million.
A conference call to discuss the third-quarter results of Loews Corporation has been scheduled for 11:00 a.m. ET, today.
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.
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