CHICAGO: Burger King Worldwide Inc on Thursday said first-quarter comparable sales likely fell more than Wall Street expected, and laid out plans for a revamped leadership team as Chief Executive Bernardo Hees prepares to become the CEO of H.J. Heinz Co.
The hamburger chain also said it expects adjusted earnings per share to rise to about 17 cents in the first quarter that ended on March 31. Analysts, on average, were looking for a profit of 16 cents per share, according to Thomson Reuters I/B/E/S.
Burger King said it expects that global comparable sales declined 1.5 percent in the quarter due to a more challenging environment and the impact of 2012's leap year. US and Canada comparable sales are expected to have fallen 3 percent, it said.
Analysts had expected first-quarter comparable sales to fall just 0.7 percent overall and 0.3 percent in the US and Canada, according to Thomson Reuters I/B/E/S.
Comparable sales were down early in the quarter, and then rose in March, as value-oriented offers appealed to diners, the company said.
The board approved a 20 percent increase in the dividend, bringing it to 6 cents per share, and authorized the repurchase of up to $200 million of common stock, the company said.
LEADERSHIP CHANGES
Berkshire Hathaway Inc and 3G struck a deal in February to acquire Heinz for $23.2 billion, one of the largest deals in the food and beverage industry's history.
3G is also Burger King's majority shareholder.
Burger King said Hees is set to become vice chairman after he moves to the role of CEO of H.J. Heinz once the ketchup maker is acquired by Berkshire and 3G Capital, or as of July 1, whichever comes first.
Hees, 43, will replace William Johnson as the CEO of Heinz.
After Heinz's April 30 shareholder meeting for a vote on the deal, 3G Capital and Berkshire Hathaway expect to speak with Johnson about his interest in a continued role with the company after the deal is completed, Heinz said.
Hees will not be selling any Burger King shares as a result of the changes, Burger King said.
Burger King also said it appointed current chief financial officer Daniel Schwartz to the role of chief operating officer, effective immediately. On July 1, Schwartz will go on to become the CEO of Burger King, replacing Hees.
Joshua Kobza will succeed Schwartz as CFO.
Among the other changes announced on Thursday, Steve Wiborg was promoted to the role of chairman of North America after serving as an executive vice president and president of North America. Alex Macedo will become president of North America.
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