Burger King Worldwide, Inc. Reports Fourth Quarter and Full Year 2012 Results

  Burger King Worldwide, Inc. Reports Fourth Quarter and Full Year 2012
  Results

Burger King Worldwide completes 2012 with fourth quarter adjusted diluted EPS
up 58%, driven by U.S. and Canada comparable sales growth of 3.7% and 330 net
                           new restaurants globally

Business Wire

MIAMI -- February 15, 2013

Burger King Worldwide, Inc. (NYSE:BKW) today reported financial results for
the fourth quarter and year ended December 31, 2012.

“We had a strong finish to the year and made significant progress on key
strategic initiatives,” said Bernardo Hees, Chief Executive Officer, Burger
King Worldwide, Inc. “We continue to capitalize on our brand by growing
globally, adding 485 net new restaurants and growing comparable sales 3.2% for
the full year 2012. Our results are evidence that the Four Pillar strategy in
the U.S. and Canada and initiatives to accelerate international unit growth
are working. During 2012, we made significant progress on our re-imaging
initiative, added international master franchise joint venture and development
agreements, and refranchised 871 restaurants. We are proud of the hard work
and dedication of our employees and franchisees that enabled us to deliver an
excellent finish to a critical year for the company. We continue to execute on
our strategy, and believe the company is well positioned to deliver
sustainable long-term growth.”

Full Year 2012 Highlights:

  *System-wide comparable sales increased 3.2% and system-wide sales
    increased 5.9% on a constant currency basis
  *Adjusted Diluted EPS increased 34.0% to $0.69
  *Adjusted EBITDA increased 16.6% on an organic basis to $652.1 million
  *Adjusted EBITDA margin increased 820 bps to 33.2%
  *Net restaurant growth of 485, growing restaurants by +3.9%
  *Successfully refranchised 871 restaurants, bringing the system to
    approximately 97% franchised
  *Re-imaged approximately 600 restaurants in the U.S. and Canada, increasing
    units on a modern image to 19% of the region
  *Launched the largest menu update in the U.S. and Canada in the history of
    the brand
  *Accelerated international growth, announcing five master franchise joint
    ventures and seven new development agreements in key growth markets
  *Refinanced $1.9 billion of debt, lowering annualized cash interest costs
    by approximately $25 million
  *Declared a cash dividend of $0.04 per share in the fourth quarter

Fourth Quarter 2012 Highlights:

  *System-wide comparable sales increased 2.7% and system-wide sales
    increased 6.7% on a constant currency basis
  *Adjusted Diluted EPS increased 57.8% to $0.23
  *Adjusted EBITDA increased 22.5% on an organic basis to $174.9 million
  *Adjusted EBITDA margin increased 1,670 bps to 43.2%
  *Increased cash dividend 25% to $0.05 per share from previous dividend

Consolidated Financial Highlights:

                 Three Months Ended December   Twelve Months Ended December
                  31,                            31,
                    2012         2011        2012         2011     
                  ($ in millions, except per share data)
                                                                 
System-wide
Comparable          2.7    %       1.2    %     3.2      %     (0.5     %)
Sales Growth^1
System-wide          6.7    %        2.2    %      5.9      %      1.7      %
Sales Growth^1
                                                                 
Net Restaurant       330             117           485             261
Growth
                                                                 
Total Revenues      $404.5         $580.6       $1,966.3       $2,335.7
Adjusted            $174.9         $154.1       652.1          $585.0
EBITDA^2
Adjusted
EBITDA               43.2   %        26.5   %      33.2     %      25.0     %
Margin^2
Adjusted Net        $81.2          $50.3        $243.4         $178.6
Income^2
Adjusted
Diluted             $0.23          $0.14        $0.69          $0.51
Earnings Per
Share^2
Net Income           $48.6           $25.0         $117.7          $88.1
Diluted
Earnings Per         $0.14           $0.07         $0.33           $0.25
Share
                                                                 
(1) System-wide comparable sales growth and system-wide sales growth are
calculated on a constant currency basis and include sales at franchise
restaurants and company-owned restaurants.


(2) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted
Diluted Earnings Per Share are non-GAAP financial measures. Please refer to
“Non-GAAP Reconciliations” for further detail.
                                                                 
Key
Performance
Indicators:
                  Three Months Ended December    Twelve Months Ended December
                  31,                            31,
                    2012          2011        2012          2011     
System
Comparable
Sales Growth
U.S. &               3.7    %        (2.0   %)     3.5      %      (3.4     %)
Canada
EMEA                 1.6    %        7.3    %      3.2      %      4.3      %
LAC                  0.7    %        9.7    %      5.7      %      7.9      %
APAC                0.8    %       (1.2   %)    (0.5     %)    (0.4     %)
Total               2.7    %       1.2    %     3.2      %     (0.5     %)
                                                                 
System Net
Restaurant
Growth
U.S. &               23              (23    )      (24      )      (50      )
Canada
EMEA                 127             47            239             154
LAC                  110             46            168             82
APAC                70            47          102           75       
Total               330           117         485           261      
                                                                 
System Ending
Restaurant
Count
U.S. &                                             7,476           7,500
Canada
EMEA                                               3,121           2,882
LAC                                                1,390           1,222
APAC                                              1,010         908      
Total                                             12,997        12,512   


System-wide sales growth of 6.7%, excluding the impact of FX, in the fourth
quarter was primarily attributable to comparable sales growth in the U.S. and
Canada and net restaurant growth internationally.

In the fourth quarter, organic revenues grew 5.6%, excluding the impact of
refranchising and FX headwinds. On a reported basis, total revenues decreased
30.3% to $404.5 million, compared to $580.6 million in the prior year period
due to global refranchising transactions as well as unfavorable FX impact,
partially offset by comparable sales growth and net restaurant growth.

Organic Adjusted EBITDA grew 22.5%, excluding the impact of refranchising and
FX headwinds. On a reported basis, Adjusted EBITDA increased 13.5% to $174.9
million, compared to $154.1 million in the prior year period. Organic growth
was driven by comparable sales and net restaurant growth, as well as G&A cost
control. On a reported basis, growth was lower due to significant progress on
our global refranchising initiative and FX headwinds. For the full year 2012,
organic Adjusted EBITDA grew 16.6%.

Adjusted Net Income and Adjusted Diluted EPS increased 61% and 58%,
respectively, compared to the prior year, primarily due to an increase in
Adjusted EBITDA, lower Depreciation and Amortization and lower interest
expense. For the full year 2012, Adjusted Net Income increased 36% and
Adjusted Diluted EPS grew 34%.

Operational and Segment Highlights

U.S. and Canada comparable sales gains in the fourth quarter were driven by
continued execution of our Four Pillars strategy. Successful new menu
additions such as the Chicken Parmesan sandwich, Cinnabon® Minibon® Rolls, and
our holiday sweets menu, including sweet potato curly fries and gingerbread
desserts, helped drive comparable sales growth. Additionally, compelling
limited-time offer promotions, such as our 55^th anniversary WHOPPER® sandwich
promotion, helped drive traffic.

Europe, the Middle East and Africa (“EMEA”) delivered comparable sales growth
of 1.6% in the fourth quarter, driven by the success of Chili Cheese
promotions in the United Kingdom, strong performance in the company’s
expanding Russian market, and the continued success of “King of the Month”
deals in Germany. Performance in southern Europe was softer, with the
company’s key Spain market decelerating as economic conditions deteriorated
during the quarter. Net restaurant growth accelerated 170% to 127 units in the
quarter, driven by strong development in Turkey, Russia, and the Middle East.

Latin America and the Caribbean (“LAC”) delivered comparable sales growth of
0.7%, despite challenging prior year comparisons in each of the company’s key
markets. The company implemented new value initiatives in Brazil and Mexico in
October to balance its menu options and complement premium offerings such as
the Picanha burger in Brazil. Net restaurant growth accelerated 139% to 110
units in the fourth quarter, driven by strong development in Brazil, Mexico,
and Central America.

Asia Pacific (“APAC”) comparable sales increased by 0.8%, driven by better
results in Australia and Korea. Net restaurant growth accelerated in APAC in
the fourth quarter, up 49% to 70 units, driven by new unit development in
China, Japan, Vietnam, and Indonesia.

As part of BKW’s global refranchising strategy, the company refranchised 181
company-owned restaurants during the quarter, primarily in the U.S. and
Canada. In connection with this quarter’s refranchising transactions, BKW
received cash proceeds of $34.9 million, development commitments and
re-imaging commitments. Including completion of the previously announced
refranchising of the company’s restaurants in Mexico and the sale of
restaurants in the U.S. which closed in the first quarter of 2013, BKW will
have completed its refranchising initiative in the U.S., LAC, and APAC.

As part of BKW’s international expansion strategy, in the fourth quarter, the
company entered into master franchise and development agreements for South
Korea and the Nordics (Sweden, Denmark, and Norway), an exclusive development
agreement for Colombia and master franchise joint venture agreements for
Central America and South Africa. Additionally, the company announced a master
franchise joint venture agreement with Alsea S.A.B. de C.V., its largest
franchisee in Mexico, which is expected to close in 2013.

Cash and Liquidity

At quarter end, total debt was $3.0 billion and net debt was $2.5 billion. Due
to the improvement in net debt and in trailing twelve month Adjusted EBITDA,
the net debt to Adjusted EBITDA ratio improved to 3.8x at December 31, 2012
from 4.6x at December 31, 2011.

On February 14, 2013 the company’s Board of Directors declared a cash dividend
of $0.05 per share, a 25% increase from the previous dividend of $0.04 per
share. The dividend will be paid on March 15, 2013 to shareholders of record
at the close of business on February 28, 2013. Future dividends will be
determined at the discretion of the Board of Directors.

Investor Conference Call

The company will host an investor conference call and webcast at 8:30 a.m. ET,
Friday, February 15, 2013, to review financial results for the quarter and
fiscal year ended December 31, 2012. The earnings call will be broadcast live
via the company's investor relations website at http://investor.bk.com and
will be available for replay. The dial-in number is 877.317.6776 for U.S.
callers and 412.317.6776 for international callers.

About Burger King Worldwide

Founded in 1954, BURGER KING^® (NYSE:BKW) is the second largest fast food
hamburger chain in the world. The original HOME OF THE WHOPPER^®, the BURGER
KING^® system operates in over 12,900 locations serving over 11 million guests
daily in 86 countries and territories worldwide. Approximately 97 percent of
BURGER KING^® restaurants are owned and operated by independent franchisees,
many of them family-owned operations that have been in business for decades.
To learn more about Burger King Worldwide, please visit the company's website
at www.bk.com or follow us on Facebook and Twitter.

Forward-Looking Statements

This press release contains certain forward-looking statements, which reflect
management's expectations regarding future events and operating performance
and speak only as of the date hereof. These forward-looking statements are not
guarantees of future performance and involve a number of risks and
uncertainties. These forward-looking statements include statements about the
company’s expectations and belief regarding its ability to continue to
capitalize on the Burger King® brand by growing globally; its expectations and
belief regarding its ability to execute on its four pillar strategy in the
U.S. and Canada and accelerate restaurant growth internationally; its
expectations and belief regarding its ability to complete its refranchising
initiative in LAC by closing on its previously-announced refranchising
transaction in Mexico; and its expectations and belief regarding its ability
to deliver sustainable long-term growth. The factors that could cause actual
results to differ materially from the company’s expectations are detailed in
the company's filings with the Securities and Exchange Commission, such as its
annual and quarterly reports and current reports on Form 8-K, including the
following: risks related to the company’s ability to successfully implement
its domestic and international growth strategy; risks related to global
economic or other business conditions that may affect the desire or ability of
customers to purchase the company’s products; risks related to the financial
strength of the company’s franchisees; risks related to the company’s
substantial indebtedness; risks related to the company’s ability to compete
domestically and internationally in an intensely competitive industry; and
risks related to the effectiveness of the company’s marketing and advertising
programs.

BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)

                                  Three Months Ended              
                                   December 31,        Increase / (Decrease)
                                    2012   2011        $         %
                                   (In millions, except per share data)
Revenues:
Company restaurant revenues        $ 182.3   $ 404.4    $ (222.1 )   (54.9  )%
Franchise and property revenues     222.2    176.2     46.0      26.1   %
Total revenues                       404.5     580.6      (176.1 )   (30.3  )%
Company restaurant expenses:
Food, paper and product costs        57.5      127.4      (69.9  )   (54.9  )%
Payroll and employee benefits        53.5      116.7      (63.2  )   (54.2  )%
Occupancy and other operating       50.2     107.2     (57.0  )   (53.2  )%
costs
Total Company restaurant             161.2     351.3      (190.1 )   (54.1  )%
expenses
Franchise and property expenses      25.1      25.5       (0.4   )   (1.6   )%
Selling, general and                 79.2      114.4      (35.2  )   (30.8  )%
administrative expenses
Other operating (income)            27.1     1.5       25.6      NM     
expense, net
Total operating costs and           292.6    492.7     (200.1 )   (40.6  )%
expenses
Income from operations               111.9     87.9       24.0       27.3   %
Total interest expense, net          50.2      61.0       (10.8  )   (17.7  )%
Loss on early extinguishment of     -        1.5       (1.5   )   NM     
debt
Income before income taxes           61.7      25.4       36.3       142.9  %
Income tax expense                  13.1     0.4       12.7      3175.0 %
Net income                         $ 48.6    $ 25.0     $ 23.6      94.4   %
                                                                     
Earnings per share:
Basic                              $ 0.14    $ 0.07     $ 0.07      93.3   %
Diluted                            $ 0.14    $ 0.07     $ 0.06      90.0   %
Weighted average shares outstanding
Basic                               350.2    348.2     1.9       0.6    %
Diluted                             356.4    348.2     8.1       2.3    %
                                                                     
NM - not meaningful


BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)

                              Twelve Months Ended                 
                               December 31,             Increase / (Decrease)
                               2012       2011           $         %
                               (In millions, except per share data)
Revenues:
Company restaurant revenues    $ 1,169.0   $ 1,638.7     $ (469.7 )   (28.7 )%
Franchise and property          797.3      697.0        100.3     14.4  %
revenues
Total revenues                   1,966.3     2,335.7       (369.4 )   (15.8 )%
Company restaurant expenses:
Food, paper and product          382.2       524.7         (142.5 )   (27.2 )%
costs
Payroll and employee             345.1       481.2         (136.1 )   (28.3 )%
benefits
Occupancy and other             309.9      441.5        (131.6 )   (29.8 )%
operating costs
Total Company restaurant         1,037.2     1,447.4       (410.2 )   (28.3 )%
expenses
Franchise and property           112.1       97.1          15.0       15.4  %
expenses
Selling, general and             346.0       417.4         (71.4  )   (17.1 )%
administrative expenses
Other operating (income)        53.3       11.3         42.0      NM    
expense, net
Total operating costs and       1,548.6    1,973.2      (424.6 )   (21.5 )%
expenses
Income from operations           417.7       362.5         55.2       15.2  %
Total interest expense, net      223.8       226.7         (2.9   )   (1.3  )%
Loss on early extinguishment    34.2       21.1         13.1      62.1  %
of debt
Income before income taxes       159.7       114.7         45.0       39.2  %
Income tax expense              42.0       26.6         15.4      57.9  %
Net income                     $ 117.7     $ 88.1        $ 29.6      33.6  %
                                                                      
Earnings per share:
Basic                          $ 0.34      $ 0.25        $ 0.08      33.0  %
Diluted                        $ 0.33      $ 0.25        $ 0.08      31.3  %
Weighted average shares
outstanding
Basic                           349.7      348.2        1.5       0.4   %
Diluted                         354.1      348.2        6.0       1.7   %
                                                                      
NM - not meaningful
                             

BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
                                                              
                                              As of
                                              December 31,        December 31,
                                              2012                2011
ASSETS                                        (In millions, except share data)
Current assets:
Cash and cash equivalents                     $   546.7           $  459.0
Trade and notes receivable, net                   179.0              152.8
Prepaids and other current assets, net            91.3               69.2
Deferred income taxes, net                       73.5             43.1    
Total current assets                              890.5              724.1
                                                                  
Property and equipment, net of accumulated
depreciation of $200.8 million                    885.2              1,026.5

and $150.1  million, respectively
Intangible assets, net                            2,811.2            2,823.3
Goodwill                                          619.2              657.7
Net investment in property leased to              180.4              242.2
franchisees
Other assets, net                                177.5            134.6   
Total assets                                  $   5,564.0        $  5,608.4 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and drafts payable                   $   68.7            $  98.4
Accrued advertising                               66.5               97.4
Other accrued liabilities                         206.8              242.7
Current portion of long term debt and            55.8             33.5    
capital leases
Total current liabilities                         397.8              472.0
                                                                  
Term debt, net of current portion                 2,905.1            3,010.3
Capital leases, net of current portion            88.4               95.4
Other liabilities, net                            382.4              366.2
Deferred income taxes, net                       615.3            615.3   
Total liabilities                                4,389.0          4,559.2 
                                                                  
Commitments and Contingencies
                                                                  
Stockholders' equity:
Preferred stock, $0.01 par value;
200,000,000 shares authorized;                    -                  -

no shares issued or outstanding
Common stock, $0.01 par value;
2,000,000,000 shares authorized;
350,238,771 shares issued and outstanding
at December 31, 2012;
348,245,293 shares issued and outstanding         3.5                3.5
at December 31, 2011
Additional paid-in capital                        1,205.7            1,186.6
Retained earnings (accumulated deficit)           76.1               (27.6   )
Accumulated other comprehensive loss             (110.3   )        (113.3  )
Total stockholders' equity                       1,175.0          1,049.2 
Total liabilities and stockholders' equity    $   5,564.0        $  5,608.4 


BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)

                                                  2012          2011
                                                   (In millions)
                                                                  
                                                                  
Cash flows from operating activities:
Net income                                         $ 117.7        $ 88.1
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        114.2          136.4
Loss on early extinguishment of debt                 34.2           21.1
Amortization of deferred financing costs and         57.0           46.3
debt issuance discount
Equity in net loss from unconsolidated               4.1            -
affiliates
(Gain) loss on remeasurement of foreign              (8.2     )     0.4
denominated transactions
Amortization of prior service costs                  (2.5     )     -
Realized loss on terminated caps/swaps               11.8           0.5
Loss (gain) on refranchisings and dispositions       27.0           (1.0     )
of assets
Impairment on non-restaurant properties              -              2.3
Bad debt expense (recoveries), net                   (0.8     )     6.1
Share-based compensation and non-cash incentive      12.2           6.4
compensation expense
Deferred income taxes                                8.9            (27.3    )
Changes in current assets and liabilities,
excluding acquisitions and dispositions:
Trade and notes receivable                           (22.2    )     (6.0     )
Prepaids and other current assets                    (7.0     )     105.5
Accounts and drafts payable                          (23.9    )     8.7
Accrued advertising                                  (32.3    )     18.3
Other accrued liabilities                            (40.3    )     16.0
Other long-term assets and liabilities              (25.5    )    (15.6    )
Net cash provided by operating activities           224.4        406.2    
Cash flows from investing activities:
Payments for property and equipment                  (70.2    )     (82.1    )
Proceeds from refranchisings, disposition of         104.9          29.9
asset and restaurant closures
Investments in / advances to unconsolidated          -              (4.5     )
affiliates
Payments for acquired franchisee operations, net     (15.3    )     -
of cash acquired
Return of investment on direct financing leases      14.2           14.6
Other investing activities                          -            0.7      
Net cash provided by (used for) investing           33.6         (41.4    )
activities
Cash flows from financing activities:
Proceeds from term debt                              1,733.5        1,860.0
Proceeds from Discount Notes                         -              401.5
Repayments of term debt and capital leases           (1,766.8 )     (1,874.5 )
Extinguishment of debt                               (112.8   )     (70.6    )
Payment of financing costs                           (16.0    )     (32.6    )
Dividends paid on common stock                       (14.0    )     (393.4   )
Proceeds from stock option exercises                 1.5            -
Proceeds from issuance of shares                    -            1.6      
Net cash used for financing activities              (174.6   )    (108.0   )
Effect of exchange rates on cash and cash            4.3            (4.8     )
equivalents
Increase in cash and cash equivalents                87.7           252.0
Cash and cash equivalents at beginning of period    459.0        207.0    
Cash and cash equivalents at end of period         $ 546.7       $ 459.0    


                 BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

                             Key Business Metrics

We evaluate our restaurants and assess our business based on the following
operating metrics.

System sales growth refers to the change in sales at all company-owned and
franchise restaurants in one period from the same period in the prior year.
Comparable sales growth refers to the change in restaurant sales in one period
from the same prior year period for restaurants that have been open for
thirteen months or longer. Company-owned restaurants refranchised during a
quarterly period are included with franchise restaurants for the purpose of
calculating comparable sales growth for the quarter. Comparable sales and
sales growth are measured on a constant currency basis, which means that
results exclude the effect of foreign currency translation and are calculated
by translating current year results at prior year exchange rates. We analyze
key operating metrics on a constant currency basis as this helps identify
underlying business trends, without distortion from the effects of currency
movements (“FX Impact”).

Franchise sales represent sales at all franchise restaurants and are revenues
to our franchisees. We do not record franchise sales as revenues; however, our
franchise revenues include royalties based on a percentage of franchise sales.
Average restaurant sales refer to the total sales divided by total store
months for all company-owned and franchise restaurants open during the period.
Net refranchisings refer to sales of company-owned restaurants to franchisees,
net of acquisitions of franchise restaurants by us.

Tabular amounts in millions of dollars unless noted otherwise.

Consolidated BKW                                             
                                                                 
                                                                 
                                                                 
Key Business
Metrics
                                                                 
                     Three Months Ended           Twelve Months Ended

                     December 31,                 December 31,
                     2012          2011           2012           2011
                                                                 
System sales growth    6.7     %     2.2     %      5.9      %     1.7      %
Franchise sales      $ 3,857.6     $ 3,415.3      $ 14,672.5     $ 13,653.4
Comparable sales
growth
Company                0.0     %     2.3     %      3.6      %     0.1      %
Franchise              2.8     %     1.1     %      3.2      %     (0.6     )%
System                 2.7     %     1.2     %      3.2      %     (0.5     )%
Average restaurant   $ 319.9       $ 309.6        $ 1,267.9      $ 1,248.0
sales
Net Restaurant
Growth (NRG)
Company                4             1              (6       )     (4       )
Franchise              326           116            491            265
System                 330           117            485            261
Net refranchisings     181           1              871            45
Restaurant counts
at period end
Company                418           1,295          418            1,295
Franchise              12,579        11,217         12,579         11,217
System                 12,997        12,512         12,997         12,512
CRM %                  11.6    %     13.1    %      11.3     %     11.7     %
                                                                 
                                                                 
                                                                 
                                                                 
                                                                 
FX Impact
                     Three Months Ended           Twelve Months Ended

                     December 31,                 December 31,
                     2012          2011           2012           2011
                                                                 
                     Favorable / (Unfavorable)    Favorable / (Unfavorable)
                                                                 
Consolidated         $ (2.2    )   $ (2.5    )    $ (41.3    )   $ 35.6
revenues
Consolidated CRM       (0.1    )     (0.4    )      (3.1     )     2.6
Consolidated SG&A      0.4           0.3            6.5            (8.2     )
Consolidated income    (0.8    )     (0.5    )      (10.9    )     5.3
from operations
Consolidated net       (2.3    )     (0.4    )      (10.6    )     5.7
income (loss)
Consolidated           (0.9    )     (0.7    )      (12.8    )     4.5
adjusted EBITDA


U.S. & Canada
                                                              
                                                                  
Key Business Metrics
                                                                  
                       Three Months Ended           Twelve Months Ended
                       December 31,                 December 31,
                       2012           2011          2012          2011
                       Favorable / (Unfavorable)    Favorable / (Unfavorable)
Systemwide sales         3.1     %      (2.0    )%    3.0     %     (3.3    )%
growth
Franchise sales        $ 2,105.1      $ 1,854.4     $ 8,143.9     $ 7,510.5
Comparable sales
growth
Company                  (0.2    )%     0.5     %     3.7     %     (1.9    )%
Franchise                3.9     %      (2.4    )%    3.4     %     (3.6    )%
System                   3.7     %      (2.0    )%    3.5     %     (3.4    )%
NRG
Company                  2              (2      )     (4      )     (7      )
Franchise                21             (21     )     (20     )     (43     )
System                   23             (23     )     (24     )     (50     )
Net Refranchisings       180            1             752           38
Restaurant counts at
period end
Company                  183            939           183           939
Franchise                7,293          6,561         7,293         6,561
System                   7,476          7,500         7,476         7,500
                                                                  
                                                                  
                       Three Months Ended           Twelve Months Ended
                       December 31,                 December 31,
                       2012           2011          2012          2011
Company:
Company restaurant     $ 104.3        $ 285.1       $ 792.9       $ 1,172.0
revenues
CRM                      8.7            38.6          90.1          142.2
CRM %                    8.3     %      13.5    %     11.4    %     12.1    %
Company restaurant
expenses as

a % of Company
restaurant revenue:
Food and paper           31.7    %      31.5    %     33.0    %     32.3    %
Payroll and benefits     30.3    %      30.2    %     30.5    %     30.4    %
Depreciation and         4.9     %      5.6     %     5.5     %     5.7     %
amortization
Other occupancy and      24.8    %      19.2    %     19.6    %     19.5    %
operating
                                                                  
Franchise:
Franchise and          $ 129.1        $ 98.1        $ 468.2       $ 397.1
property revenues
Franchise and            15.2           19.1          79.8          69.9
property expenses
Segment SG&A             14.2           25.0          76.3          95.7
Segment depreciation     7.7            21.1          68.8          86.2
and amortization
Segment income           116.1          113.7         471.0         459.9
Segment margin           49.7    %      29.7    %     37.3    %     29.3    %
                                                                  
FX Impact                             
                       Three Months Ended           Twelve Months Ended
                       December 31,                 December 31,
                       2012           2011          2012          2011
                                                                  
                       Favorable / (Unfavorable)    Favorable / (Unfavorable)
                                                                  
Segment revenues       $ 1.1          $ (0.3    )   $ (1.6    )   $ 6.4
Segment CRM              -              -             (0.2    )     0.6
Segment income           0.6            (0.1    )     0.3           (1.3    )


EMEA                                                            
                                                                     
                                                                     
Key Business Metrics
                                                                     
                          Three Months Ended         Twelve Months Ended
                          December 31,               December 31,
                            2012         2011      2012         2011  
                          Favorable / (Unfavorable)  Favorable / (Unfavorable)
Systemwide sales growth      10.5   %       9.3   %     11.2   %       6.5   %
Franchise sales           $  1,011.1      $ 920.4    $  3,822.9      $ 3,649.0
Comparable sales growth
Company                      0.6    %       7.7   %     4.3    %       5.8   %
Franchise                    1.7    %       7.2   %     3.1    %       4.1   %
System                       1.6    %       7.3   %     3.2    %       4.3   %
NRG
Company                      -              -           (1     )       (4    )
Franchise                    127            47          240            158
System                       127            47          239            154
Net Refranchisings           1              -           59             7
Restaurant counts at
period end
Company                      132            192         132            192
Franchise                    2,989          2,690       2,989          2,690
System                       3,121          2,882       3,121          2,882
                                                                     
                                                                     
                          Three Months Ended         Twelve Months Ended
                          December 31,               December 31,
                            2012         2011      2012         2011  
Company:
Company restaurant        $  61.5         $ 86.2     $  264.6        $ 330.7
revenues
CRM                          9.7            11.9        30.7           35.5
CRM %                        15.8   %       13.8  %     11.6   %       10.7  %
Company restaurant expenses as

a % of Company restaurant revenue:
Food and paper               29.5   %       29.8  %     30.1   %       29.4  %
Payroll and benefits         31.7   %       29.4  %     32.5   %       31.4  %
Depreciation and             2.4    %       3.2   %     3.1    %       3.5   %
amortization
Other occupancy and          20.6   %       23.7  %     22.7   %       25.0  %
operating
                                                                     
Franchise:
Franchise and property    $  57.2         $ 48.6     $  208.3        $ 194.9
revenues
Franchise and property       9.2            6.3         29.7           25.9
expenses
Segment SG&A                 13.7           19.6        61.1           81.1
Segment depreciation         3.7            5.7         17.9           22.6
and amortization
Segment income               47.7           40.3        166.1          146.0
Segment margin               40.2   %       29.9  %     35.1   %       27.8  %
                                                                     
FX Impact
                          Three Months Ended         Twelve Months Ended
                          December 31,               December 31,
                            2012         2011      2012         2011  
                                                                     
                          Favorable / (Unfavorable)  Favorable / (Unfavorable)
                                                                     
Segment revenues          $  (4.1   )     $ (1.0  )  $  (35.9  )     $ 23.4
Segment CRM                  (0.3   )       (0.1  )     (2.2   )       1.7
Segment income               (1.5   )       (0.3  )     (12.7  )       6.4


LAC                                                           
                                                                   
                                                                   
Key Business Metrics
                         Three Months Ended          Twelve Months Ended
                         December 31,                December 31,
                           2012         2011      2012        2011    
                         Favorable / (Unfavorable)   Favorable / (Unfavorable)
Systemwide sales            11.2   %       8.2   %     9.9     %     13.5    %
growth
Franchise sales          $  356.1        $ 318.5     $ 1,334.1     $ 1,208.7
Comparable sales
growth
Company                     (0.7   )%      4.5   %     0.6     %     4.3     %
Franchise                   0.8    %       10.0  %     5.9     %     8.1     %
System                      0.7    %       9.7   %     5.7     %     7.9     %
NRG
Company                     2              -           3             1
Franchise                   108            46          165           81
System                      110            46          168           82
Net Refranchisings          -              -           -             -
Restaurant counts at
period end
Company                     100            97          100           97
Franchise                   1,290          1,125       1,290         1,125
System                      1,390          1,222       1,390         1,222
                                                                   
                                                                   
                         Three Months Ended          Twelve Months Ended
                         December 31,                December 31,
                           2012         2011      2012        2011    
Company:
Company restaurant       $  15.9         $ 15.3      $ 62.5        $ 66.2
revenues
CRM                         2.8            2.9         9.9           12.5
CRM %                       17.6   %       19.0  %     15.8    %     18.9    %
Company restaurant
expenses as

a % of Company
restaurant revenue:
Food and paper              38.5   %       39.2  %     38.8    %     38.2    %
Payroll and benefits        13.6   %       12.4  %     12.9    %     12.0    %
Depreciation and            7.5    %       9.8   %     9.3     %     9.7     %
amortization
Other occupancy and         22.8   %       19.6  %     23.2    %     21.2    %
operating
                                                                   
Franchise:
Franchise and property   $  22.2         $ 17.5      $ 71.9        $ 61.9
revenues
Franchise and property      -              (0.4  )     -             (1.1    )
expenses
Segment SG&A                3.2            4.1         14.6          18.3
Segment depreciation        1.2            1.6         6.0           6.7
and amortization
Segment income              23.0           18.3        73.2          63.9
Segment margin              60.4   %       55.8  %     54.5    %     49.9    %
                                                                   
FX Impact
                         Three Months Ended         Twelve Months Ended
                         December 31,                December 31,
                           2012         2011      2012        2011    
                                                                   
                         Favorable / (Unfavorable)   Favorable / (Unfavorable)
                                                                   
Segment revenues         $  0.8          $ (1.5  )   $ (3.7    )   $ 1.1
Segment CRM                 0.2            (0.3  )     (0.6    )     0.2
Segment income              -              (0.2  )     (0.4    )     -


APAC                                            
                                                                  
Key Business Metrics
                        Three Months Ended          Twelve Months Ended
                        December 31,                December 31,
                        2012           2011         2012           2011
                        Favorable / (Unfavorable)  Favorable / (Unfavorable)
Systemwide sales           13.6   %      4.0   %      4.8     %     13.2    %
growth
Franchise sales         $  385.3       $ 321.9      $ 1,371.6     $ 1,285.1
Comparable sales
growth
Company                    (9.4   )%     7.0   %      2.4     %     7.1     %
Franchise                  0.8    %      (1.6  )%     (0.6    )%    (0.7    )%
System                     0.8    %      (1.2  )%     (0.5    )%    (0.4    )%
NRG
Company                    -             3            (4      )     6
Franchise                  70            44           106           69
System                     70            47           102           75
Net Refranchisings         -             -            60            -
Restaurant counts at
period end
Company                    3             67           3             67
Franchise                  1,007         841          1,007         841
System                     1,010         908          1,010         908
                                                                  
                                                                  
                        Three Months Ended          Twelve Months Ended
                        December 31,                December 31,
                        2012           2011         2012          2011
                                                                  
Company:
Company restaurant      $  0.6         $ 17.8       $ 49.0        $ 69.8
revenues
CRM                        (0.1   )      (0.2  )      1.1           1.1
CRM % (1)                  (7.3   )%     (1.4  )%     2.3     %     1.6     %
                                                                  
Franchise:
Franchise and           $  13.8        $ 12.0       $ 48.9        $ 43.1
property revenues
Franchise and              0.7           0.5          2.6           2.4
property expenses
Segment SG&A               1.2           7.1          12.0          22.7
Segment depreciation       0.6           1.6          5.7           7.6
and amortization
Segment income             12.4          5.8          41.1          26.7
Segment margin             86.1   %      19.5  %      42.0    %     23.6    %
                                                                  
(1) Percentage
figures calculated
based on whole
numbers.
                                                                  
                                                                  
FX Impact
                        Three Months Ended         Twelve Months Ended
                        December 31,                December 31,
                        2012           2011         2012          2011
                                                                  
                        Favorable / (Unfavorable)  Favorable / (Unfavorable)
                                                                  
Segment revenues        $  -           $ 0.3        $ (0.1    )   $ 4.7
Segment CRM                -             -            (0.1    )     0.1
Segment income             -             (0.1  )      -             (0.6    )

Other Operating (Income) Expense, net

                                    Three Months Ended   Twelve Months Ended
                                     December 31,          December 31,
                                     2012    2011          2012    2011
Net (gains) losses on disposal of
assets, restaurant closures and      $ 15.6   $ 6.2        $ 30.8     $ 6.2
refranchisings
Litigation settlements and             0.4      0.6          1.7        1.3
reserves, net
Foreign exchange net (gains)           1.1      (11.3 )      (4.2 )     (4.6 )
losses
Loss on termination of interest        -        -            8.7        -
rate cap
Equity in net (income) loss from       2.7      0.3          4.1        1.2
unconsolidated affiliates
Other, net                            7.3     5.7        12.2     7.2  
Other operating (income) expense,    $ 27.1   $ 1.5       $ 53.3    $ 11.3 
net


Selling, general and administrative expenses


                                      Three Months Ended  Twelve Months Ended
                                      December 31,         December 31,
                                        2012    2011      2012     2011
                                                                       
Selling expenses                      $  7.8     $ 20.1    $  48.3     $ 78.2
Management general and administrative    48.4      58.9       212.7      248.5
expenses
Share-based compensation                 6.8       5.5        10.2       6.4
Depreciation and amortization            4.8       4.0        17.6       15.9
2010 Transaction costs                   -         1.6        -          3.7
Global restructuring and related         -         13.8       -          46.5
professional fees
Field optimization project costs         -         3.4        -          10.6
Global portfolio realignment project     10.1      7.1        30.2       7.6
costs
Business combination agreement          1.3      -         27.0      -
expenses
Total general and administrative        71.4     94.3      297.7     339.2
expenses
Selling, general and administrative   $  79.2    $ 114.4   $  346.0    $ 417.4
expenses


                 BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES

                         Non-GAAP Financial Measures

                                 (Unaudited)

To supplement its condensed consolidated financial statements presented on a
U.S. Generally Accepted Accounting Principles (“GAAP”) basis, the Company
reports the following non-GAAP financial measures: EBITDA, Adjusted EBITDA,
Adjusted Net Income, adjusted income before income taxes, adjusted income tax
expense, net debt, TTM Adjusted EBITDA, net debt to TTM Adjusted EBITDA ratio,
Organic revenue growth and Organic Adjusted EBITDA growth.

EBITDA is defined as earnings (net income or loss) before interest, taxes,
depreciation and amortization, and is used by management to measure operating
performance of the business.

Adjusted EBITDA is defined as EBITDA excluding the impact of share-based
compensation, other operating (income) expenses, net, and all other
specifically identified costs associated with non-recurring projects,
including Transaction costs, global restructuring and related professional
fees, field optimization project costs, global portfolio realignment project
costs and Business Combination Agreement expenses. Adjusted EBITDA is used by
management to measure operating performance of the business, excluding
specifically identified items that management believes do not directly reflect
our core operations, and represents our measure of segment income.

Adjusted net income is defined as net income excluding the impact of those
same items excluded from Adjusted EBITDA. Adjusted Diluted EPS is calculated
by dividing Adjusted Net Income by the number of diluted shares of the Company
during the reporting period. Adjusted net income and Adjusted Diluted EPS are
used by management to evaluate the core operating performance. Net debt to TTM
Adjusted EBITDA ratio is used by management to evaluate the Company’s current
and prospective financial position.

Organic revenue growth and Organic Adjusted EBITDA growth are non-GAAP
measures that exclude both FX Impact and net refranchisings. Management
believes that organic growth is an important metric for measuring the core
operating performance of the business as it excludes the impact of our
refranchising activities and foreign currency exchange rates.

BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES
Organic growth in Revenue and Adjusted EBITDA for the Three Months and Fiscal Year Ended
December 31, 2012
(Unaudited)


 $ in millions                                                                                 
                                                              Refran.    Adjusted   FX
                     Actual                Q4 '12 vs. Q4 '11    Impact     Q4 '11     Impact    Organic Growth
                     Q4 '12     Q4 '11     $          %         $          $          $         $         %
      Calculation:              A          B                    C          A+C=D      E         B-C-E=F   F/D
  Revenue
  North America      $233.4     $383.1     ($149.7)   (39.1%)   ($160.8)   $222.3     $1.1      $10.0     4.5%
  EMEA               $118.7     $134.7     ($16.0)    (11.9%)   ($17.6)    $117.1     ($4.1)    $5.7      4.9%
  LAC                $38.1      $32.9      $5.2       15.8%     -          $32.9      $0.8      $4.4      13.4%
  APAC               $14.3      $29.9      ($15.6)    (52.2%)   ($17.2)    $12.7      -         $1.6      12.2%
  Consolidated       $404.5     $580.6     ($176.1)   (30.3%)   ($195.6)   $385.0     ($2.2)    $21.7     5.6%
                                                                                                          
  Adjusted EBITDA
  North America      $116.1     $113.7     $2.4       2.1%      ($11.7)    $102.0     $0.1      $14.0     13.7%
  EMEA               $47.7      $40.3      $7.4       18.4%     ($1.6)     $38.7      ($1.5)    $10.5     27.2%
  LAC                $23.0      $18.3      $4.7       25.7%     -          $18.3      -         $4.7      25.7%
  APAC               $12.4      $5.8       $6.6       113.8%    $3.1       $8.9       -         $3.5      39.3%
  Unallocated        ($24.3)    ($24.0)    ($0.3)     1.3%      -          ($24.0)    -         ($0.3)    1.2%
  Management G&A
  Consolidated       $174.9     $154.1     $20.8      13.5%     ($10.2)    $143.9     ($1.4)    $32.4     22.5%
                                                                                                          
                                                                                                          
                                                                                                          
                                                                                                          
  $ in millions
                                                                Refran.    Adjusted   FX
                     Actual               2012 vs.            Impact     2011       Impact    Organic Growth
                                           2011
                     2012       2011       $          %         $          $          $         $         %
      Calculation:              A          B                    C          A+C=D      E         B-C-E=F   F/D
                                                                                                          
  Revenue
  North America      $1,261.1   $1,569.1   ($308.0)   (19.6%)   ($337.6)   $1,231.5   ($1.6)    $31.2     2.5%
  EMEA               $472.9     $525.6     ($52.7)    (10.0%)   ($42.4)    $483.2     ($35.9)   $25.6     5.3%
  LAC                $134.4     $128.1     $6.3       4.9%      -          $128.1     ($3.7)    $10.0     7.8%
  APAC               $97.9      $112.9     ($15.0)    (13.3%)   ($23.5)    $89.4      ($0.1)    $8.6      9.6%
  Consolidated       $1,966.3   $2,335.7   ($369.4)   (15.8%)   ($403.5)   $1,932.2   ($41.3)   $75.4     3.9%
                                                                                                          
  Adjusted EBITDA
  North America      $471.0     $459.9     $11.1      2.4%      ($17.0)    $442.9     $0.3      $27.8     6.3%
  EMEA               $166.1     $146.0     $20.1      13.8%     ($1.6)     $144.4     ($12.7)   $34.4     23.8%
  LAC                $73.2      $63.9      $9.3       14.6%     -          $63.9      ($0.4)    $9.7      15.2%
  APAC               $41.1      $26.7      $14.4      53.9%     $3.7       $30.4      -         $10.7     35.2%
  Unallocated        ($99.3)    ($111.5)   $12.2      (10.9%)   -          ($111.5)   -         $12.2     (10.9%)
  Management G&A
  Consolidated       $652.1     $585.0     $67.1      11.5%     ($14.9)    $570.1     ($12.8)   $94.8     16.6%


Non-GAAP Financial Measures
Reconciliation of EBITDA and Adjusted EBITDA to Net Income
                                                             
                                                                 
                                                                 
                    Three Months Ended            Twelve Months Ended
                    Decemeber      Decemeber      Decemeber      Decemeber 31,
                    31,            31,            31,
                    2012           2011           2012           2011
EBITDA and          (In millions)
adjusted EBITDA:
                                                                 
U.S. and Canada     $  116.1       $  113.7       $  471.0       $  459.9
EMEA                   47.7           40.3           166.1          146.0
LAC                    23.0           18.3           73.2           63.9
APAC                   12.4           5.8            41.1           26.7
Unallocated           (24.3  )      (24.0  )      (99.3  )      (111.5  )
Management G&A
Adjusted EBITDA        174.9          154.1          652.1          585.0
Share-based
compensation and
non-cash
                       6.8            5.5            10.2           6.4
incentive
compensation
expense ^(1)
2010 Transaction       -              1.6            -              3.7
costs ^(2)
Global
restructuring and
related                -              13.8           -              46.5
professional fees
^(3)
Field optimization     -              3.4            -              10.6
project costs ^(4)
Global portfolio
realignment            10.1           7.1            30.2           7.6
project costs ^(5)
Business
combination            1.3            -              27.0           -
agreement expenses
^(6)
Other operating
(income) expense,     27.1         1.5          53.3         11.3    
net
EBITDA                 129.6          121.2          531.4          498.9
Depreciation and      17.7         33.3         113.7        136.4   
amortization
Income from            111.9          87.9           417.7          362.5
operations
Interest expense,      50.2           61.0           223.8          226.7
net
Loss on early
extinguishment of      -              1.5            34.2           21.1
debt
Income tax expense    13.1         0.4          42.0         26.6    
Net income          $  48.6       $  25.0       $  117.7      $  88.1    


Non-GAAP Financial Measures
Reconciliation of Net Income to Adjusted Net Income

                       Three Months Ended           Twelve Months Ended
                        December 31,  December 31,   December 31,  December
                                                                     31,
                        2012              2011       2012             2011
                       (In millions, except per share data)
                                                                     
Net income              $    48.6      $   25.0       $    117.7     $  88.1
Income tax expense          13.1         0.4            42.0        26.6
Income before income         61.7          25.4            159.7        114.7
taxes
Adjustments:
Franchise agreement          5.2           5.4             20.6         21.8
amortization
Amortization of
deferred financing
costs and                    2.6           4.0             13.2         14.5

original issue
discount
Loss on early
extinguishment of            -             1.5             34.2         21.1
debt
Other operating              27.1          1.5             53.3         11.3
(income) expense, net
2010 Transaction             -             1.6             -            3.7
costs^(2)
Global restructuring
and related                  -             13.8            -            46.5
professional fees^(3)
Field optimization           -             3.4             -            10.6
project costs^(4)
Global portfolio
realignment project          10.1          7.1             30.2         7.6
costs^(5)
Business combination
agreement                   1.3          -              27.0        -
expenses^(6)
Total adjustments            46.3          38.3            178.5        137.1
                                                                     
Adjusted income             108.0        63.7           338.2       251.8
before income taxes
                                                                     
Adjusted income tax         26.8         13.4           94.8        73.2
expense ^(7)
                                                                     
Adjusted net income     $    81.2      $   50.3       $    243.4     $  178.6
                                                                     
                                                                     
Diluted- EPS            $    0.23      $   0.14       $    0.69      $  0.51
(Adjusted Net Income)
Diluted Weighted            356.4        348.2          354.1       348.2
Average Shares

Non-GAAP Financial Measures
Reconciliation of Adjusted Net Income and Net Income, Net Debt / TTM Adj.
EBITDA


                                                 As of
                                                  December 31,   December 31,
                                                  2012            2011
Net debt to adjusted EBITDA                       (In millions, except ratios)
                                                                  
Long term debt, net of current portion            $   2,905.1     $   3,010.3
Capital leases, net of current portion                88.4            95.4
Current portion of long term debt and capital        55.8           33.5
leases
Total Debt                                            3,049.3         3,139.2
                                                                  
Cash and cash equivalents                             546.7           459.0
Net debt                                              2,502.6         2,680.2
TTM adjusted EBITDA                                   652.1           585.0
                                                                 
Net debt / TTM adjusted EBITDA                    3.8x            4.6x

Non-GAAP Financial Measures
Reconciliation of Net Income to TTM Adjusted EBITDA
                                                 
                                                   Twelve Months Ended
                                                   December 31,   December 31,
                                                                
                                                   2012           2011
EBITDA and adjusted EBITDA                         (In millions)
                                                                  
Net income                                         $    117.7     $    88.1
Interest expense, net                                   223.8          226.7
Loss on early extinguishment of debt                    34.2           21.1
Income tax expense                                      42.0           26.6
Depreciation and amortization                          113.7         136.4
EBITDA                                                  531.4          498.9
Adjustments:
Share-based compensation and non-cash
                                                        10.2           6.4
incentive compensation expense ^(1)
Other operating (income) expense, net                   53.3           11.3
2010 Transaction costs^(2)                              -              3.7
Global restructuring and related professional           -              46.5
fees^(3)
Field optimization project costs^(4)                    -              10.6
Global portfolio realignment project costs^(5)          30.2           7.6
Business combination agreement expenses^(6)            27.0          -
Total adjustments                                      120.7         86.1
                                                                  
Adjusted EBITDA                                    $    652.1     $    585.0

                         Non-GAAP Financial Measures

                      Footnotes to Reconciliation Tables

(1) Represents share-based compensation expense associated with employee stock
options, and for the twelve months ended December 31, 2012 and December 31,
2011, also includes the portion of annual non-cash incentive compensation that
eligible employees elected to receive as common equity in lieu of their 2012
and 2011 cash bonus, respectively.

(2) Represents expenses incurred related to 3G’s acquisition of Burger King
Holdings, Inc., the Company’s indirect wholly-owned subsidiary, in October
2010.

(3) Represents severance benefits, other severance-related costs incurred in
connection with the Company’s global restructuring efforts, the voluntary
resignation severance program offered for a limited time to eligible employees
based at its Miami headquarters and additional reductions in corporate and
field positions in the U.S. This restructuring plan was completed in 2011.

(4) Represents severance-related costs, compensation costs for overlap
staffing, travel expenses, consulting and training costs incurred in
connection with the Company’s efforts to expand and enhance its U.S. field
organization. This project was completed in 2011.

(5) Represents costs associated with an ongoing project to realign the
Company’s global restaurant portfolio by refranchising Company-owned
restaurants and establishing strategic partners and joint ventures to
accelerate development. These costs primarily include severance related costs
and fees for professional services.

(6) Represents share-based compensation expense related to awards granted
during the three and twelve months ended December 31, 2012 resulting from the
increase in equity value of Burger King Worldwide Holdings, Inc. implied by
the business combination agreement and professional fees and other transaction
costs associated with the business combination agreement.

(7) Adjusted income tax expense for the three and twelve months ended December
31, 2012 and 2011 is calculated using the Company’s statutory tax rate in the
jurisdiction in which the costs were incurred.

Contact:

Burger King Worldwide, Inc.
Investors:
Rahul Ketkar, 305-378-7696
Investor Relations
investor@whopper.com
or
Media:
Bryson Thornton, 305-378-7833
Global Communications
mediainquiries@whopper.com