Burger King Worldwide (BKW) Guides Q1 Slightly Above the Street; Boosts Dividend, $200M Buyback
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Burger King Worldwide (NYSE: BKW) sees Q1 EPS of $0.17, versus the consensus of $0.16 and growing over 45% versus the prior year period.
The company expects global comparable sales growth of negative 1.5% for the quarter, reflective of a more challenging environment and the impact of leap day. U.S. and Canada comparable sales growth is expected to be negative 3.0%, due to tougher prior year comparisons, a challenging macroeconomic environment and heightened competitive activity. After negative comparable sales growth early in the quarter, comparable sales growth in both the U.S. and Canada and worldwide was positive in March, as more compelling value offers resonated with consumers.
Underscoring management’s and the Board of Directors’ confidence in the long-term strength of the business and its ability to generate sustainable cash flow, the Board declared a cash dividend of $0.06 per share, a 20% increase from the previous dividend of $0.05 per share declared on February 14, 2013. The dividend is payable on May 15, 2013 to shareholders of record at the close of business on May 1, 2013.
In an effort to have a balanced approach to capital allocation and to return cash to shareholders, the Board authorized the repurchase of up to $200 million of the company’s common stock. The share repurchases will be made in the open market from time to time prior to May 31, 2016, and will be funded from available cash.
The company expects global comparable sales growth of negative 1.5% for the quarter, reflective of a more challenging environment and the impact of leap day. U.S. and Canada comparable sales growth is expected to be negative 3.0%, due to tougher prior year comparisons, a challenging macroeconomic environment and heightened competitive activity. After negative comparable sales growth early in the quarter, comparable sales growth in both the U.S. and Canada and worldwide was positive in March, as more compelling value offers resonated with consumers.
Underscoring management’s and the Board of Directors’ confidence in the long-term strength of the business and its ability to generate sustainable cash flow, the Board declared a cash dividend of $0.06 per share, a 20% increase from the previous dividend of $0.05 per share declared on February 14, 2013. The dividend is payable on May 15, 2013 to shareholders of record at the close of business on May 1, 2013.
In an effort to have a balanced approach to capital allocation and to return cash to shareholders, the Board authorized the repurchase of up to $200 million of the company’s common stock. The share repurchases will be made in the open market from time to time prior to May 31, 2016, and will be funded from available cash.
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