Businessweek

Burger King Worldwide, Inc. franchises and operates fast food hamburger restaurants, principally under the Burger King brand. 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. Global Operations The company operates in four segments: The United States (U.S.) and Canada (U.S. and Canada); Europe, the Middle East, and Africa (EMEA); Latin America and the Caribbean (LAC); and Asia Pacific (APAC). U.S. and Canada As of December 31, 2012, this segment had 7,293 franchise restaurants and 183 company restaurants in the U.S. and Canada. During 2012, the company refranchised 752 restaurants in the U.S. and Canada. EMEA As of December 31, 2012, this segment had 2,989 franchise restaurants and 132 company restaurants in Germany, Turkey, and Russia. During 2012, the company refranchised all of its company restaurants in the United Kingdom. Russia: In June 2012, the company entered into a joint venture agreement in Russia to accelerate unit development in this market. It partnered with VTB Capital, the investment arm of Russia’s bank; and the company’s Russian franchisee, Burger Rus. The company granted sub-franchising rights in the Russian market to the joint venture. South Africa: In November 2012, the company entered into a joint venture agreement with Grand Parade Investments, Ltd., an operator of hospitality, gaming, and leisure companies in the region, to develop the Burger King brand in South Africa. The company granted the joint venture development and sub-franchising rights in the country. Autogrill: In November 2012, the company entered into an agreement with Autogrill to develop Burger King restaurants at captive locations, such as highways, train stations, and airports in France, Switzerland, Poland, Italy, the Czech Republic, Germany, and the Netherlands. LAC As of December 31, 2012, this segment had 1,290 franchise and 100 company restaurants in LAC, including primarily in Brazil, Mexico, Colombia, and Central America. The company has a joint venture agreement with Vinci Partners for Brazil and granted master franchise and development rights to the joint venture. Colombia: In October 2012, the company entered into an agreement with Fondo Escala Capital and Promotora to develop Burger King restaurants in Colombia. Mexico: In December 2012, the company entered into an agreement with Alsea S.A.B. de C.V., the parent of its franchisee in Mexico, to establish a joint venture in Mexico. Under this agreement, the company would contribute the company restaurants in Mexico and grant master franchise and development rights for Mexico to the joint venture. Central America: In December 2012, the company created a joint venture in Central America with BEBOCA LTD, its franchisee in Costa Rica and Panama. The new joint venture owns master franchise and development rights for Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. APAC As of December 31, 2012, this segment had 1,007 franchise and 3 company restaurants in APAC, with 357 restaurants in Australia that are franchised and operated under the name Hungry Jack’s, a brand that the company owns in Australia and New Zealand. Australia is the market in which it operates under a brand other than Burger King. China: In June 2012, the company entered into a joint venture agreement for China to accelerate unit development in this market. It partnered with Cartesian Capital Group, a global private equity firm, and members of the Kurdoglu family, who operate the company’s international franchisee, TAB Gida. It contributed its 44 company restaurants in China to the joint venture and it granted development and sub-franchising rights for the Chinese market to the joint venture. Business Strategy The company’s business strategy includes driving sales and traffic in the U.S. and Canada; accelerating international development; and continuing to implement its refranchising initiative. Intellectual Property As of December 31, 2012, the company owned approximately 4,053 trademark and service mark registrations and applications, and approximately 1,092 domain name registrations worldwide. Government Regulation The company and its franchisees 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. Its franchising activities are subject to the rules and regulations of the Federal Trade Commission, and various state laws and similar foreign agencies. The company is also subject to the regulations of the U.S. Citizenship and Immigration Services and U.S. Customs and Immigration Enforcement, and tariffs and regulations on imported commodities and equipment and laws regulating foreign investment. Seasonal Operations The company’s business is moderately seasonal. Restaurant sales are higher in the spring and summer months when weather is warmer than in the fall and winter months. Restaurant sales during the winter are highest in December, during the holiday shopping season. The company’s restaurant sales and company restaurant margins are lowest during the winter months, which include February, the shortest month of the year. Competition The company’s major competitors include McDonald’s Corporation and The Wendy’s Company, as well as regional hamburger restaurant chains, such as Carl’s Jr., Jack in the Box, and Sonic. History Burger King Worldwide, Inc. was founded in 1954.