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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 1. Organization&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Burger King Holdings, Inc. (&amp;#8220;BKH&amp;#8221; or the &amp;#8220;Company&amp;#8221;) is a Delaware corporation formed on July
   23, 2002. The Company is the parent of Burger King Corporation (&amp;#8220;BKC&amp;#8221;), a Florida corporation that
   franchises and operates fast food hamburger restaurants, principally under the &lt;i&gt;Burger King&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;&amp;#174;&lt;/sup&gt; &lt;/i&gt;brand
   (the &amp;#8220;Brand&amp;#8221;).
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company generates revenues from three sources: (i)&amp;#160;retail sales at Company restaurants;
   (ii)&amp;#160;franchise revenues, consisting of royalties based on a percentage of sales reported by
   franchise restaurants and franchise fees paid by franchisees; and (iii)&amp;#160;property income from
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Restaurant sales are affected by the timing and effectiveness of the Company&amp;#8217;s advertising,
   new products and promotional programs. The Company&amp;#8217;s results of operations also fluctuate from
   quarter to quarter as a result of seasonal trends and other factors, such as the timing of
   restaurant openings and closings, the acquisition of franchise restaurants and the disposition of
   Company restaurants, as well as variability of the weather. Restaurant sales are typically higher
   in the spring and summer months (our fourth and first fiscal quarters) when the weather is warmer
   than in the fall and winter months (our second and third fiscal quarters). Restaurant sales during
   the winter are typically highest in December, during the holiday shopping season. Our restaurant
   sales and Company restaurant margin are typically lowest during our third fiscal quarter, which
   occurs during the winter months and includes February, the shortest month of the year. Furthermore,
   adverse weather conditions can have material adverse effects on restaurant sales. The timing of
   religious holidays may also impact restaurant sales.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;i&gt;Recent Developments&lt;/i&gt;&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On October&amp;#160;19, 2010, BKH completed a merger with Blue Acquisition Sub, Inc., a Delaware
   corporation (&amp;#8220;Merger Sub&amp;#8221;), and a wholly owned subsidiary of Burger King Worldwide Holdings, Inc.,
   formerly known as Blue Acquisition Holding Corporation, a Delaware corporation (&amp;#8220;Parent&amp;#8221;) (the
   &amp;#8220;Merger&amp;#8221;), pursuant to the Agreement and Plan of Merger dated as of September&amp;#160;2, 2010 (the &amp;#8220;Merger
   Agreement&amp;#8221;). Parent is wholly-owned by 3G Special Situations Fund II, L.P. (&amp;#8220;3G&amp;#8221;), which is an
   affiliate of 3G Capital Partners Ltd., an investment firm based in New York City (&amp;#8220;3G Capital&amp;#8221; or
   the &amp;#8220;Sponsor&amp;#8221;). As a result of the Merger, Merger Sub merged into the Company, with the Company as
   the surviving corporation, the Company became a wholly-owned subsidiary of Parent, and the common
   stock of BKH ceased to be traded on the New York Stock Exchange after close of market on October
   19, 2010. See Note 17.
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