1352801--8/27/2009--Burger_King_Holdings

related topics

{operation, international, foreign}

{cost, operation, labor}

{debt, indebtedness, cash}

{financial, litigation, operation}

{system, service, information}

{condition, economic, financial}

{stock, price, operating}

{cost, regulation, environmental}

{competitive, industry, competition}

{customer, product, revenue}

{capital, credit, financial}

{operation, natural, condition}

{loan, real, estate}

{property, intellectual, protect}

{personnel, key, retain}

{interest, director, officer}

{tax, income, asset}

{regulation, government, change}

{cost, contract, operation}

{acquisition, growth, future}

Economic conditions are adversely affecting consumer discretionary spending and may continue to negatively impact our business and operating results. Our business is affected by changes in consumer preferences and perceptions. Our business is subject to fluctuations in foreign currency exchange and interest rates. Increases in commodity or other operating costs could harm our profitability and operating results. Labor shortages or increases in labor costs could slow our growth or harm our business. Our operating results depend on the effectiveness of our marketing and advertising programs and franchisee support of these programs. Approximately 90% of our restaurants are franchised and this restaurant ownership mix presents a number of disadvantages and risks. Our franchisees are independent operators, and we have limited influence over their restaurant operations or their decision to invest in other businesses. Our operating results are closely tied to the success of our franchisees. If we fail to successfully implement our international growth strategy, our ability to increase our revenues and operating profits could be adversely affected and our overall business could be adversely affected. Our international operations subject us to additional risks and costs and may cause our profitability to decline. There can be no assurance that the franchisees can or will renew their franchise agreements with us. Incidents of food-borne illnesses or food tampering could materially damage our reputation and reduce our restaurant sales. Our results can be adversely affected by disruptions or catastrophic events. We rely on distributors of food, beverages and other products that are necessary for our and our franchisees operations. If these distributors fail to provide the necessary products in a timely fashion, our business would face supply shortages and our results of operations might be adversely affected. The loss of key management personnel or our inability to attract and retain new qualified personnel could hurt our business and inhibit our ability to operate and grow successfully. Changes in tax laws and unanticipated tax liabilities could adversely affect our effective income tax rate and profitability. The realignment of our European and Asian businesses may result in increased income tax expense to us if these businesses are less profitable than expected. Leasing and ownership of a significant portfolio of real estate exposes us and our franchisees to potential losses and liabilities and we or our franchisees may not be able to renew leases, control rent increases and control real estate expenses at existing restaurant locations or obtain leases or purchase real estate for new restaurants. We may not be able to adequately protect our intellectual property, which could harm the value of our brand and branded products and adversely affect our business. We may experience significant fluctuations in our operating results due to a variety of factors, many of which are outside of our control. Our indebtedness under our senior secured credit facility is substantial and could limit our ability to grow our business. In the event we are unable to refinance or repay such indebtedness prior to their maturities, we may need to take certain actions which could negatively impact our business or dilute our existing stockholders. Our senior secured credit facility has restrictive terms and our failure to comply with any of these terms could put us in default, which would have an adverse effect on our business and prospects. A change in control, as defined in our senior secured credit facility, would be an event of default under the facility. We face risks of litigation and pressure tactics, such as strikes, boycotts and negative publicity from restaurant customers, franchisees, suppliers, employees and others, which could divert our financial and management resources and which may negatively impact our financial condition and results of operations. Our products are subject to numerous and changing government regulations, and failure to comply with such existing or future government regulations could negatively affect our sales, revenues and earnings. Increasing regulatory complexity surrounding our operations will continue to affect our operations and results of operations in material ways. The personal information that we collect may be vulnerable to breach, theft or loss that could adversely affect our reputation and operations. We rely on computer systems and information technology to run our business. Any material failure, interruption or security breach of our computer systems or information technology may adversely affect our business and our results of operations. Compliance with or cleanup activities required by environmental laws may hurt our business. Our current principal stockholders own a significant amount of our common stock and have certain contractual rights to appoint directors, which will allow them to significantly influence all matters requiring shareholder approval.

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1352801--8/27/2009--Burger_King_Holdings_Inc