Q1 2011 Earnings Call Transcript

Transcript Call Date 11/10/2010

Operator: Good afternoon, ladies and gentlemen. Thank you very much for your patience, and welcome to the Burger King First Quarter Fiscal 2011 Earnings Conference Call. My name is Rudy, and I will be your conference coordinator for today. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today's conference. (Operator Instructions). As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today's conference, Mr. Sergio Manas, Director, Investor Relations. Please proceed.

Sergio Manas - IR: Thank you, Rudy and good afternoon, everyone. Welcome to Burger King's first quarter fiscal 2011 earnings conference call. The audio broadcast of this call maybe accessed through our Investor Relations page on our website at, where it will be available for future reference for 30 days. Additional information about our quarter can be found in our Form 10-Q which we filed with the SEC yesterday.

Presenting on the call today is Ben Wells, Chief Financial Officer. Also with us on the call is Daniel Schwartz. Deputy Chief Financial Officer and Mike Kappitt, Chief Marketing Officer, North America, who will be available to answer any questions you may have about our marketing, advertising and products during the Q&A portion of the call.

We'll spend about 10 minutes providing a brief overview of the quarter, before opening the call for questions. Also, we'll be limiting our prepared remarks and Q&A to only information disclosed in our first quarter 10-Q.

Before we begin today, I would like to remind everyone that this conference call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations based on currently available data.

However, actual results may be impacted by future events and uncertainties and could differ materially from what is discussed today. More detailed information about these uncertainties is contained within the forward-looking statements section of our Form 10-Q.

With that, I will turn the call over to Ben.

Ben K. Wells - CFO: Thanks, Sergio and good afternoon, everyone. On October 19, we announced the completion of the acquisition of the company by 3G Capital for $24 per share in cash or approximately $4 billon, including assumption of our outstanding debt.

To fund the acquisition, we entered into a new senior secured term loan credit facility totaling $1.85 billion and issued $800 million of senior notes. We also previously announced that Bernardo Hees would be appointed our Chief Executive Officer once he joined the Company, which occurred on November 4th.

Despite the continuing difficult economy and challenging consumer environment we faced during the quarter, we made meaningful progress across our strategic plans' growth pillars.

During last quarter, we announced that we would strategically refranchise up to 50% of our company-owned restaurant portfolio over the next three to five years. During this quarter, we executed on the strategy completing the sale of 35 restaurants in Germany and in the Netherlands. 13 restaurants were refranchised in Germany and the entire Netherlands company-owned portfolio of 22 restaurants were sold.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.