Food, paper and product costs decreased 0. After a very tumultuous and disappointing start to the 21st century, Burger King's shareholders saw The Wendy's Company, Subway and Starbucks take turns passing them as McDonald's chief competitor, at least in terms of sales revenue. In the United Kingdom, our business faces challenges due to franchisee financial distress, a negative brand image resulting from concerns about obesity and food-borne illness, high labor and real estate costs and increased competition from bakeries and other new entrants that are diversifying into healthier options in response to nutritional concerns. Unless the context otherwise requires, all references to we, us, our and Successor refer to Burger King Holdings, Inc. As part of our global portfolio realignment project, we intend to increase the number of franchised restaurants; therefore, the problems associated with these drawbacks may be exacerbated and may present a significant challenge for management. We have similar arrangements in other international markets where we operate company restaurants.
However, our franchisees are independent operators and we cannot control many factors that impact the profitability of their restaurants. We and our wholly-owned subsidiary, Burger King Brands, Inc. In 2018 Burger King announced a double quarter pound burger, seen as a direct shot at McDonalds' own quarter pound burger. The portion of the Term Loan Facility denominated in Euros will serve as a natural hedge against net assets denominated in Euros. The current company valuation of Burger King Holdings Inc. The sponsor management termination fee resulted from negotiations with the sponsors to terminate the management agreement which obligated us to pay the quarterly management fee. A major breach, theft or loss of personal information regarding our employees and their families, our franchisees, vendors or consumers that is held by us or our vendors could result in substantial fines, penalties and potential litigation against us which could negatively impact our results of operations and financial condition.
We believe that the large hamburger chains in the United Kingdom have experienced declining sales as they face increased competition from not only the bakeries, but also from pubs that are repositioning themselves as family venues and offering inexpensive food. Were the worlds second largest fast food hamburger restaurant chain as measured by the number of restaurants and system-wide sales. In Madrid, Spain, we lease an office space of 16,210 square feet under a lease that expires in March 2009. Burger King, also known by the initials B. In that event, the price of our common stock would likely decrease.
We believe that the organizational realignments that we have implemented will position us to execute our global growth strategy, while remaining responsive to national differences in consumer preferences and local requirements. Any such damage or interruption could have a material adverse effect on our business, cause us to face significant fines, customer notice obligations or costly litigation, harm our reputation with our customers or prevent us from paying our suppliers or employees or receiving payments on a timely basis. As a result, our business is increasingly exposed to risks inherent in foreign operations. We have experienced seven consecutive quarters of negative comparable sales in the U. Our customers responded by purchasing these less expensive items instead of higher margin products like our flagship product, the Whopper sandwich. The strength of our menu has been built on the core assets of allowing consumers to customize their hamburgers their way and using our distinct flame-broiled cooking platform to make better tasting hamburgers.
Stock quotes provided by InterActive Data. Over the 5 year period Burger King revenue in 2009 was highest at 2. As a result of the greater number of company restaurants, McDonalds and Wendys may have a greater ability to implement operational initiatives and business strategies, including their marketing and advertising programs. Legal Proceedings 26 Item 4. Burger King has been trying to tap into the Japanese market for some time now. Some of our lease payments were at below-market lease rates while other lease payments were at above-market lease rates. Burger King, Fast food, Fast food restaurant 1176 Words 4 Pages McDonalds Case Analysis The most important general environmental factors to be considered for the industry and McDonalds include its demographic, sociocultural, global, and physical environment segmentations.
The failure of our franchisees to support our marketing programs and strategic initiatives could adversely affect our ability to implement our business strategy and could materially harm our business, results of operations and financial condition. From 1989, when Grand Metropolitan plc acquired Burger King Corporation, to 2002, we were subjected to frequently changing strategies and an absence of consistent focus. These factors were partially offset by a decrease 37 in renewal franchise fees due to the timing of renewals as a result of incentives provided to franchisees to accelerate restaurant remodels in the U. Other registered trademarks referred to in this prospectus are the property of their respective owners. Partially offsetting these factors was the elimination of royalties from franchise restaurants that were closed or acquired by us in fiscal 2005. Also in connection with those reviews, we implemented operational initiatives, which have helped us improve restaurant operations.
In addition, our industry has long been subject to the threat of food tampering by suppliers, employees or customers, such as the addition of foreign objects in the food that we sell. Unless otherwise stated, comparable sales growth, average restaurant sales and sales growth are presented on a system-wide basis, which means that these measures include sales at both Company restaurants and franchise restaurants. These leases generally provide for 20-year terms, depending on the term of the related franchise agreement. We are owned and controlled by 3G Capital and its interests may conflict with other stakeholders. Average restaurant sales is influenced by comparable sales performance and restaurant openings and closings.
In several of our international markets, there is a single franchisee that owns and operates all of the restaurants within a country. We evaluate our restaurants and assess our business based on the following operating metrics and key financial measures: Sales growth refers to the change in sales at all Company and franchise restaurants in one period from the same period in the prior year. We and our franchisees are dependent upon third parties to make frequent deliveries of perishable food products that meet our specifications. Subject to the foregoing, the payment of cash dividends in the future, if any, will be at the discretion of our board of directors and will depend upon such factors as earnings levels, capital requirements, our overall financial condition and any other factors deemed relevant by our board of directors. Each restaurant is required to follow the Manual of Operating Data, an extensive operations manual containing mandatory restaurant operating standards, specifications and procedures prescribed from time to time to assure uniformity of operations and consistent high quality of products at Burger King restaurants. The Department of Health and Human Services, the National Association of Insurance Commissioners, the Department of Labor and the Treasury Department have yet to issue necessary enabling regulations and guidance with respect to the health care reform legislation.
We rely on a combination of trademarks, copyrights, service marks, trade secrets and similar intellectual property rights to protect our brand and branded products. In addition, our operating results are closely tied to the success of our franchisees, and we are dependent on franchisees to open new restaurants as part of our growth strategy. Today around 50 percent of these restaurants are located outside the United States. Of the 333 agreements that expired in fiscal 2004, 53, or 16%, were renewed and 103, or 31%, were extended for periods that ranged from nine months to two years. A significant component of our future growth strategy involves increasing our net restaurant count in our international markets.
These swaps are entered into with financial institutions and have reset dates and critical terms that match those of the underlying debt. At the time of the acquisition, we faced significant challenges, including declining average restaurant sales which resulted in lower restaurant profits compared to our competitors. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, based on our growth strategies and anticipated trends in our business. Impact of Inflation We believe that our results of operations are not materially impacted by moderate changes in the inflation rate. As our competitors expand their operations, including through acquisitions or otherwise, we expect competition to intensify. From time to time, we are involved in other legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property.