Oppenheimer Lowers Estimates On Burger King Holdings Inc. (BKC)
August 25, 2010 2:12 PM
Oppenheimer is out with a report, where it maintains its “perform” rating on shares of Burger King Holdings Inc. (NYSE: BKC). Analysts are also lowering their estimates and now expect EBITDA and EPS to drop slightly in FY11 from FY10.
BKC reported F4Q10 EPS of $0.36, which topped both consensus and Oppenheimer estimates of $0.34. However, the company reported restaurant sales of $454M, missing analyst estimates of $469M.
Oppenheimer mentions, “We are conservatively not modeling meaningful gains from refranchising of company stores and anticipate this will tie up franchise capital that could have been used to more meaningfully grow the aggregate system store base and/or remodel existing franchise stores. As it stands, only 15% of the franchise base boasts the most updated remodel.”
BKC is currently trading at 13X Oppenheimer’s FY11E EPS and 6.8X EV to Oppenheimer’s FY11 EBITDA estimate.
Shares of BKC are currently trading at $16.90; no target price was available on the stock.
