By Contributing Reporter
SÃO PAULO, BRAZIL – Burger King Brasil reported a net profit of R$3.051 (US$0.75) million in the first quarter of 2019, a result representing a decrease of 65.4 percent in relation to the same period in 2018.
Excluding the effects of accounting standard IFRS 16, the net income would have totaled R$8.1 million, according to the company’s results report.
IFRS 16 is an International Financial Reporting Standard promulgated by the International Accounting Standards Board (IASB) providing guidance on accounting for leases.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) adjusted for the first three months of 2019 increased 136.4 percent to R$86 million. Excluding IFRS 16, the adjusted EBITDA would have been R$52 million, an increase of 42.4 percent compared to the first quarter of 2018.
Over the period, BK Brasil’s net revenue amounted to R$665 million, up 37.9 percent on a year-on-year basis. By the end of March, the financial result was negative at R$12.582 million, reversing the positive balance presented on March 31st, 2018, when it totaled R$7.799 million.
In the first quarter of 2019, the number of Burger King restaurants in Brazil was 792, with 161 franchisees and 631 company-owned.
Compared to the first three months of the previous year, Burger King opened 83 restaurants. Popeyes stores have also been growing and reached 11 at the end of the quarter.
Dessert outlets, including kiosks and outlets within restaurants (but not physically connected to the counter), amounted to 358 in the first quarter of 2019, an increase of 92 units compared to the same period in 2018.
According to the company, restaurants opened in the last twelve months contributed to the growth of BK Brasil’s net operating revenue in the quarter, which increased 37.9 percent, amounting to R$665 million.