Burger King Holdings has reported 2011 first quarter Adjusted Ebitda of $121.1m compared to $106.2m in the same quarter of 2010, a 14% improvement driven by reductions in general and administrative expenses following a global restructuring and the implementation of a zero-based budgeting programme.
The company increased global restaurant count by 50 net new restaurants in the first quarter. As previously disclosed, system-wide comparable sales growth was negative 2.8%, with the US and Canada down 6.0%, EMEA/APAC up 1.7% and Latin America up 4.0%.
The company had a net loss of $6.8m for the quarter compared to net income of $41.0m for the same period in the prior year, primarily due to a significant increase in interest expense as a result of debt incurred in connection with the sale of the company to an affiliate of 3G Capital in October 2010; $13.0m of costs from the sale of the company and global restructuring; a $19.6m loss on early extinguishment of debt associated with the refinancing of its senior secured debt and negative comparable sales growth.
Earlier in the quarter, the company successfully refinanced its senior secured debt to reduce annual cash interest payments by approximately $32m. Adjusted net income was $19.9m for the quarter compared to $38.1m in the same period last year.
Source: Burger King
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