2014 :WORLD CUP:LET THE SHOW BEGIN

2014 WORLD CUP:LET THE SHOW BEGIN

 ……………………………..AFTER MONTHS OF RIOTS SOCCER SHOWPIECE TO GO ON

…………………………………CLOSE UP  ON ACTIVITIES ON THE BRAZILIAN STOCK EXCHANGE,STRONG BUSINESSES

………………………………………….FIFA WORRIED OF RIOTS IN BRAZIL,SECURITY BOOSTED AHEAD OF GAMES STARTING TODAY

SAO PAULO (AP) — It's almost time. The day Brazilians have been anxiously waiting for is finally arriving.

Brazil plays Croatia on Thursday to get the home World Cup underway, beginning its quest for a sixth world title almost seven years after the nation was picked as host.

After so much talk about delays, protests and problems, fans at last are getting a chance to cheer for the national team on home soil in football's showcase tournament.

If Brazil wins the opening game, the fact that the stadium in Sao Paulo isn't even fully finished yet will quickly be forgotten. A loss, quite simply, is unthinkable for a nation whose identity is so closely linked to its football team.

Brazil hasn't hosted the World Cup since 1950, when it endured a heartbreaking loss to Uruguay in the last title-deciding game. This time, everybody knows that only the title will be enough to please the home crowd.

"We are all eager to get started, we are just counting the days," Brazil midfielder Ramires said Tuesday. "We know that the fans have confidence in our team and they are behind us. We have to do everything possible to try to win this World Cup. We know everybody is expecting us to do it."

Brazil's Neymar, left, and Hernanes practice during a training session of Brazilian national soc …

Boosted by the home crowd, Brazil is one of the main favorites to recapture the trophy won by Spain four years ago in South Africa. But the other usual World Cup contenders will be trying to spoil the party in the land of football, including Germany, Italy, Argentina and the Netherlands, runner-up in 2010.

Brazil is trying to become the first nation to win the World Cup at home since France did it in 1998. The Brazilians were eliminated in the quarterfinals of the last two tournaments, to France in 2006 and the Netherlands in 2010.

A festive World Cup atmosphere has taken over Brazil in the run-up to the tournament despite the country's preparation problems and the threats of protests. Brazilians had been slow to get into the World Cup mood, but now streets are being painted with the green and yellow colors and local flags are being displayed on windows of homes across the country.

The crowd support is one of the biggest reasons coach Luiz Felipe Scolari has been saying loud and clear that Brazil is obligated to win the World Cup at home. Players also don't hide that they believe Brazil is the main title favorite.

"We know that we will have the fans behind us, and together I think we have a great chance of reaching our final goal, which is to win the World Cup," Brazil starting midfielder Luiz Gustavo said.

Brazil's Neymar practices during a training session of the Brazilian national soccer team, at th …

Brazilian fans had been questioning the national team before last year's Confederations Cup, but the title in the warm-up tournament was enough to bring the fans back on board. That tournament also helped show that Brazil has a team capable of competing against the top football nations today. The victory came in a final against world champion Spain.

"The Confederations Cup allowed us to regain our confidence," said Scolari, the coach when Brazil won its last world title in 2002. "Now we have to repeat that during the World Cup."

Brazil begins the tournament having won 15 of its last 16 matches, the only loss a 1-0 result at Switzerland in the first match after the Confederations Cup.

Brazil will start the World Cup with the same lineup that won the Confederations Cup, with 22-year-old Barcelona striker Neymar leading the team.

Croatia, led by Real Madrid playmaker Luka Modric, will hope to pull off a monumental upset, but the team won't be at full strength against the hosts. Coach Niko Kovac won't have forward Mario Mandzukic, who was red-carded in the team's final qualifier, and experienced midfielder Niko Kranjcar, who had to be dropped from the squad because of a late hamstring injury. Novac was already without defender Josip Simunic, who was banned for 10 games by FIFA for leading fans in a pro-Nazi chant after a qualifying match.

The high-profile opening match will be played at the troubled Itaquerao, the construction of which was delayed so badly that the roof won't even be fully finished until after the tournament. A crowd of more than 61,000 people is expected at the Itaquerao, including many heads of states.

The other Group A match will be played between Mexico and Cameroon on Friday in the northeastern city of Brazil Fast Food Corp. (BOBS) ("Brazil Fast Food", or "the Company"), one of the largest food service groups in Brazil with 1,192 points of sale, operating under (i) the Bob's brand, (ii) the Yoggi brand, (iii) KFC and Pizza Hut São Paulo as franchisee of Yum! Brands, and (iv) Doggis as master franchisee of Gastronomia & Negocios S.A. (former Grupo de Empresas Doggis S.A.), today announced financial results for the first quarter ended March 31, 2014.

Q1 2014 Highlights

• System-wide sales totaled R$ 349.9 million, up 17.6% from Q1 2013
• Revenue totaled R$ 66.5 million, up 14.2% from Q1 2013
• Points of sale totaled 1,192 at March 31, 2014 (505 kiosks and 19 temporary points of sale), up from 1,049 at March 31, 2013
• EBITDA was R$ 8.7 million, down 23.7% from R$ 11.4 million in Q1 2013
• Operating income was R$ 6.6 million, down 35.2% from R $10.2 million in Q1 2013
• Net income was R$ 4.6 million, or R$ 0.56 per basic and diluted share

Note that all numbers are in Brazilian currency.

"We continued to experience a very challenging operating environment in Brazil's fast food industry during the first quarter of 2014, characterized by escalating costs for food and labor, muted growth in incomes and consumer spending. The market environment has also turned increasingly competitive, due to significant branding efforts of one of our established competitors sponsoring the upcoming FIFA World Cup. Renewed efforts of established international brands to increase share in Brazil created fierce competition between incumbents and expanding international brands in fast food. This has required increased investment in branding, facilities and promotions, and made it challenging to pass through these higher costs to our customers. While our revenues continued to expand at over 14%, our profitability dropped significantly as compared to the first quarter of 2013, with operating income down 35,2%," said Mr. Ricardo Bomeny, CEO and CFO of Brazil Fast Food.

"Looking in more detail at our brands, we are very pleased with the performance of our Bob's franchised stores, where net franchise revenues grew 17% and operating income grew by 22.2% to R$ 10.1 million with an operating margin of 73%. The number of franchise outlets grew to 1,093, from 972 on March 31, 2013. Our owned-and-operated Bob's stores grew revenues by 2.8% over Q1 2013, but were barely profitable for the quarter. We have recently made some changes to our management structure and incentives for these stores that we believe will help to restore a reasonable level of profitability.

"We were pleased with the continued expansion of Pizza Hut stores, where we added 12 new stores and net revenues grew by 30.7% over Q1 2013, although contribution to operating income is similar to last year. Our KFC stores continued to struggle in the local market with a slight decline in revenues and a $1.8 million operating loss for the quarter. We are in active discussions with Yum! Brands as to how to better adapt the KFC concept, marketing, and menu offerings to the Brazilian market so as to create a more vibrant future for this brand," Mr. Bomeny said.

First Quarter 2014 Results

System-wide sales grew 17.6% in the first quarter to R$ 349.9 million, driven by an increase in the number of franchised points of sale.

Total revenue for the first quarter of 2014 was R$ 66.5 million, an increase of 14.2% as compared to R$ 58.3 million in the first quarter of 2013, due to higher revenues from franchisees and own-operated restaurants.

Net restaurant sales for company-owned restaurants increased 13.5% year-over-year to R$ 52.7 million in the first quarter of 2014, driven by higher sales at Bob's and Pizza Hut.

Net revenue from franchisees increased 16.9% year-over-year to R$ 13.9 million, driven primarily by an increase in number of franchised retail outlets to 1,093, as compared to 972 a year ago.

Operating expenses increased 24.7% to R$ 59.9 million in the first quarter of 2014 from R$ 48 million in the first quarter of 2013. As a percentage of revenue, operating costs increased to 90% of total revenue in the first quarter of 2014 from 82.4% of total revenue in the first quarter of 2013. 

Operating income for the first quarter of 2014 was R$ 6.6 million, a decrease of 35.2% from R$ 10.2 million in the first quarter of 2013. Operating margin in the first quarter of 2014 declined to 10%, as compared to 17.6% in the first quarter of 2013.

EBITDA in the first quarter of 2014 was R$ 8.7 million, down by 23.7% as compared to R$ 11.4 million in the first quarter of 2013. EBITDA margin was 13%, as compared to 19.5% in the first quarter of 2013. Please refer to Table No. 4 in this press release for a reconciliation of EBITDA to its nearest GAAP equivalent.

Interest expense was R$ 1.1 million in the first quarter of 2014, as compared to interest income of R$ 0.1 million in the first quarter of 2013.

Net income in the first quarter of 2014 was R$ 4.6 million, or R$ 0.56 per basic and diluted share, as compared to R$ 6.7 million, or R$ 0.83 per basic and diluted share in the first quarter of 2013.

Financial Condition

As of March 31, 2014 the Company had R$ 53.1 million in cash and equivalents, up from R$ 50.1 million as of March 31, 2013. Working capital was R$ 41.6 million at March 31, 2014, compared with R$ 41.9 million as of March 31, 2013. Debt obligations with financial institutions were R$23.5 million as of March 31, 2014, compared with R$23.6 million as of March 31, 2013. Total shareholders' equity was R$ 85.5 million at March 31, 2014, compared to R$ 80.8 million at March 31, 2013.

Recent Events

There were no developments during the first quarter of 2014 regarding the Company's administrative appeal against the penalty charged by the Brazilian Internal Revenue Service related to the its restructuring in 2006.

Business Outlook

In 2014, the company expects to continue a higher level of investment in facilities, advertising and promotion in order to support the growth of its brands in Brazil and respond to international competitors. This will continue to put pressure in profitability and operating results in the near future.

"Despite the near-term challenges due to the macro-economy and escalating competition, we strongly believe that we have the right brand assets and management team in place to drive continued growth. In the first quarter of 2014 we invested $7.8 million in new stores that includes a new multi-brand format combining Bob's, Doggis and Yoggi in one location, a new standalone Yoggi store concept called Yoggi Desigual, and expansion of Pizza Huts in high-traffic locations," Mr. Bomeny said.

"For 2014, to support our expansion and competitive position, we will also be making a significant investment in branding and promotion activities. Bob's recently presented its new visual identity, with a different store design and ambiance, communications, equipment and ingredients, to its franchisees at its National Convention. We will make a significant investment to refresh our owned-and-operated stores and will continuously incentivize our franchisees to do the same. While we expect to see continued margin pressure due to these activities, our goal is to achieve some improvement in our overall profit margins from Q1 2014 levels. Our strong balance sheet provides us with the ability to pursue this expansion strategy without recourse to outside financing.

"Brazil's economy has slowed significantly, with real GDP growth for 2014 expected to be in the range of 2% and inflation north of 6%, primarily due to rising food and labor prices. This will create difficulties across the restaurant industry and create near-term financial headwinds for Brazil Fast Food. But we continue to believe that the opportunity to build a significant player in the fast food industry is compelling and that we are on the right path to build long-term value with our unique business," concluded Mr. Bomeny.

About Brazil Fast Food Corp.

Brazil Fast Food Corp., through its holding company in Brazil, BFFC do Brasil Participações Ltda. ("BFFC do Brasil", formerly 22N Participações Ltda.), and its subsidiaries, manage one of the largest food service groups in Brazil and franchise units in Angola and Chile. Our subsidiaries are Venbo Comércio de Alimentos Ltda. ("Venbo"), LM Comércio de Alimentos Ltda. ("LM"), PCN Comércio de Alimentos Ltda. ("PCN"), CFK Comércio de Alimentos Ltda. ("CFK", former Clematis Indústria e Comércio de Alimentos e Participações Ltda.), CFK São Paulo Comércio de Alimentos Ltda. ("CFK SP"), MPSC Comércio de Alimentos Ltda. ("MPSC"),DGS Comércio de Alimentos Ltda. ("DGS"), CLFL Comércio de Alimentos Ltda. ("CLFL"), Little Boss Comércio de Alimentos Ltda. ("Little Boss"), Separk Comércio de Alimentos Ltda. ("Separk"), Schott Comércio de Alimentos Ltda. ("Schott"), FCK Franquias e Participações Ltda. ("FCK", former Suprilog Logística Ltda.), Yoggi do Brasil Ltda. ("Yoggi"), and Internacional Restaurantes do Brasil S.A. ("IRB"). IRB has 40% of its capital held by individuals,

in a related issue, Police intelligence officer Adriano Barbosa tracked the drug gang leader known as "Little P" for almost a month as part of Brazil's push to curb violence in Rio de Janeiro's slums before the World Cup starts today.

The real-time reports on Little P's whereabouts weren't coming from police informants. Nor from undercover officers. Barbosa had a more high-tech tool for the hunt that led to the March 26 arrest: a Heron drone outfitted with a heat-sensing camera. The drone, produced by Israel Aerospace Industries Ltd., allowed Barbosa to monitor Little P at night, far from view and earshot.

With more than 10,000 miles of borders to monitor and a defense budget that grew four times faster than the U.S. in the past decade, Brazil is becoming a key customer for Israel, the world's largest exporter of drones. Israeli companies including IAI and Elbit Systems Ltd. (ESLT) have edged out global competitors to win government contracts by sharing drone technology with Brazil, which is developing its own local industry as it turns to unmanned aircraft for everything from crowd monitoring at World Cup games to surveillance of crops.

"Brazil wants to build its own defense industrial base, and rather than do all the R&D themselves, they like to partner up," Michael Blades, an analyst at consulting firm Frost & Sullivan, said in a phone interview from San Antonio in April. On these deals, "Israel has been very strong, and from what I understand more willing to transfer some of the technology."

Israel sold $4.62 billion of unmanned aerial systems from 2005 to 2012, almost 10 percent of the country's defense export industry in the period, according to a March 2013 report by Frost & Sullivan. Globally, the drone industry will reach $72 billion by 2020, according to Blades.

There are about 50 legal drones being used for civilian purposes in Brazil today while the military has between five and 10, according to Antonio Castro, a Rio de Janeiro-based consultant and head of the Brazilian Defense and Security Industries Association's committee on drones.

Israeli companies have focused on selling drones for military purposes in Brazil, something their U.S. counterparts have largely missed out on because of tighter military trade restrictions, said Blades. Security technology accounted for about 18 percent of Israel's $1.1 billion of exports to Brazil in 2013, triple the percentage in 2008, according to Israel's Economic Mission in Sao Paulo.

Drone Spending

Brazil's military spending on drones is ranked 12th in the world through 2020, according to Frost & Sullivan. An IAI Heron drone would cost about $10 million, depending on the type of sensor it has, Blades said. Tel Aviv-based IAI declined to comment on the price of a Heron drone.

Elbit and state-owned IAI are profiting from Brazil's defense strategy, announced in 2008, to shift capabilities away from conventional warfare to surveillance and protection of infrastructure and natural resources, particularly in the Amazon and offshore regions.

For Elbit, based in Haifa, Israel, it's been a chance to make up for lost business from military budget cuts in the U.S. and Europe. The company is focusing on niche products and bolstering its efforts in Latin America and Asia, said Michael Klahr, an analyst at Citigroup Inc. in Tel Aviv.

"Drones are definitely a growth area," he said by phone in April. "When defense budgets are being cut, they're being cut more in terms of land forces and large projects."

Brazil's airforce, which already uses Elbit's Hermes 450 drones, bought a Hermes 900 system in the first quarter to support security and safety missions during the World Cup, the company said during a May 13 earnings call.

Brazilian-Made Drones

Elbit's local subsidiary AEL Sistemas, a maker of avionics systems, formed a joint venture with Brazilian jetmaker Embraer SA (EMBR3) in 2011 to focus solely on drone production.

"It's not just for events like the World Cup, these things are needed for day-to-day things as well," Vitor Neves, vice-president of operations at AEL Sistemas in Porto Alegre, said in a phone interview in April. "Public security secretaries are looking for more and more solutions."

Elbit's U.S.-listed shares have risen 4.9 percent this year, compared with a 0.7 percent average among industry peers. The stock rallied 52 percent in 2013, its first annual gain in four years. The shares advanced 0.3 percent to 221 shekels, or the equivalent of $63.82, at 1:57 p.m. in Tel Aviv.

IAI is negotiating its second investment in a Brazilian company in order to compete for more government contracts, said Henrique Gomes, chief executive officer of IAI's Brazilian unit.

"The idea is to have a Brazilian-made drone soon," Gomes said in a May 19 e-mailed response to questions.

Brazil has boosted military spending 48 percent since 2004 to $31.5 billion in 2013, compared with a 12 percent increase in the U.S., according to the Stockholm International Peace Research Institute.

Sixteen Dead

Elbit and IAI will face more competition from Brazilian companies in the area of commercial drone use, said Castro, the consultant.

The government has been subsidizing Brazilian companies to develop drone technology since 2006, and there are now seven companies capable of manufacturing unmanned aircraft, he said.

"Our companies are very well equipped in terms of technology, and so I think they're going to be able to compete well," Castro said. Once Brazilian regulators approve standardized rules for civilian use, which is scheduled to happen by year-end, "there's going to be an explosion in the market," he said.

Brazilian officials call the pre-World Cup dragnet that netted Little P a "pacification" of the favelas, the Portuguese word for shanty town. The drug lord became a key target for police as he expanded his control of Mare, one of the city's largest slums.

In the days leading up to his arrest and the occupation that followed, 16 people were killed in Mare, according to a report by Rio's state security secretary. Barbosa, the chief of the federal police's intelligence division, said the use of drones may have prevented the loss of more lives.

"Instead of having to send police into the favela, you're using drones in controlled airspace," he said. "It reduces the risks." From Wikipedia, the free encyclopedia

  The BM&F BOVESPA (Portuguese pronunciation: [boˈvezpɐ]; in full, Bolsa de Valores, Mercadorias & Futuros de São Paulo) is a stock exchange located at São Paulo, Brazil. As of December 31, 2011 it had a market capitalization of US $1.22 Trillion, making it in the 13th largest stock exchange in the world. On May 8, 2008, the São Paulo Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F) merged, creating BM&FBOVESPA.^[3] The benchmark indicator of BM&FBOVESPA is the Índice Bovespa. There were 381 companies traded at Bovespa as of April 30, 2008.^[4]

On May 20, 2008 the Ibovespa index reached its 10th consecutive record mark closing at 73,516 points, with a traded volume of USD 4.2 billion or R$ 7.4 billion,^[5] and in August 17, 2011 the Ibovespa made its biggest traded volume in its history, with a volume of USD 14.8 billion or R$ 23.7 billion.^[6]

Founded on August 23, 1890 by Emilio Rangel Pestana, the "Bolsa de Valores de São Paulo" (São Paulo Stock Exchange, in English) has had a long history of services provided to the stock market and the Brazilian economy. Until the mid-1960s, Bovespa and the other Brazilian stock markets were state-owned companies, tied with the Secretary of Finances of the states they belonged to, and brokers were appointed by the government.

After the reforms of the national financial system and the stock market implemented in 1965/1966, Brazilian stock markets assumed a more institutional role. In 2007, the Exchange demutualized and became a for-profit company.

Through self-regulation, Bovespa operates under the supervision of the Comissão de Valores Mobiliários (CVM), analogous to the American SEC. Since the 1960s, it has constantly evolved with the help of technology such as the introduction of computer-based systems, mobile phones and the internet. In 1972, Bovespa was the first Brazilian stock market to implement an automated system for the dissemination of information online and in real-time, through an ample network of computer terminals.

At the end of the 1970s, Bovespa also introduced a telephone trading system in Brazil; the "Sistema Privado de Operações por Telefone" or "SPOT" (Private System of Telephone Trading, in English). At the same time, Bovespa developed a system of fungible safekeeping and online services for brokerage firms.

In 1990, the negotiations through the Sistema de Negociação Electrônica - CATS (Computer Assisted Trading System) was simultaneously operated with the traditional system of "Pregão Viva Voz" (open outcry). Currently, BM&FBOVESPA is a fully electronic exchange.

In 1997, a new system of electronic trading, known as the Mega Bolsa, was implemented successfully. The Mega Bolsa extends the potential volume of processing of information and allows the Exchange to increase its overall volume of activities.

With the goal to increase popular access to the stock markets, Bovespa introduced in 1999 the "Home Broker", an internet-based trading systems that allows individual investors to trade stocks. The system enables users to execute buy and sell orders online.

In 2000, Bovespa created three new listing segments, the Novo Mercado (New Market), Level 2 and Level 1 of Corporate Governance Standards, allowing companies to accede voluntarily to more demanding disclosure, governance and compliance obligations. The new listing segments mostly languished until 2004, when a growing number of newly public companies began to list on the Novo Mercado and other segments as part of a capital-raising effort. From 2004 to 2010, the vast majority of new listings on the Bovespa were made by Novo Mercado, Level 2 and Level 1 companies. The Novo Mercado, Level 2 and Level 1 segments are based on a contractual agreement of the listed company, its controlling shareholder, and its management to comply with specified regulations. In addition, listed companies must submit to arbitration as a method of resolving disputes. The set of protections entailed by a Novo Mercado listing is apparently deemed by market participants to increase the attractiveness of companies. The stock market index of Novo Mercado listed companies (the IGC) has consistently outperformed the broader Ibovespa index since its launch.

The recent success of the Brazilian equity capital markets is attributed to a significant extent to the credibility engendered by the Novo Mercado regulations. In 2007, only the United States and China equity markets had a greater number of initial public offerings. The availabiltity of a "market exit" has also encouraged the development of a private equity industry, a growing Brazilian investment banking market and a thriving asset management industry. Another side benefit of a thriving equity market has been access to equity financing for the international expansion of Brazilian business.^[7] Brazilian multinational companies have used the proceeds of equity offerings to fund a growing number of international acquisitions. Vale, Embraer, Gerdau, Brazil Foods, Marfrig Alimentos and JBS have acquired businesses outside Brazil using the proceeds from equity offerings.^[8] Attractive valuations of Brazilian subsidiaries have led international companies to list their Brazilian subsidiaries, as was the case of Banco Santander Brasil.^[9]

On May 8, 2008, Bovespa Holding announced the merger of the São Paulo Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F), creating the world's second largest stock exchange.^[10]

As a result of an early 2008 stock swap, Chicago's CME Group owns a 5% stake in BM&FBovespa, and in turn, BM&FBovespa owns a 5% stake in CME Group. The agreement has also created an order routing trading system between both exchanges.

A senior FIFA official fears there will be trouble at this summer’s World Cup following months of serious civil unrest across Brazil.
There is anger in the south American country over the billions spent on the finals at the expense of much needed investment in health and social welfare.
That anger manifested itself at last summer’s Confederations Cup, the dress rehearsal for the World Cup, with mass demonstrations resulting in some of the worst violence Brazil has seen for decades.
The trouble has continued and this year there have been clashes between riot police and protesters in cities including Rio de Janeiro, Sao Paulo and the capital Brasilia. A presidential election in October is adding to tensions in the country.
Now Michel D’Hooghe has become the first prominent FIFA official to reveal concerns about the potential for civil unrest during the finals.
The Belgian, who has been on the  FIFA executive for 16 years and is their medical chief, told Standard Sport: “I am sure there will be problems, specially as some months later there will be elections in Brazil. That is why I am not looking forward so enthusiastically towards World Cup.”
Such is the anger in Brazil that even their footballing great Pele has been denounced as a “traitor” for defending FIFA.
“It is completely contrary to the normal attitude,” said D’Hooghe, “When you have the World Cup you give great hospitality to the people who are coming. But we had to cope with the negative aspects of the people in Brazil during last year’s Confederations Cup and these negative aspects will be there now. We must not hide that.”

Mr SEPP BLATTER,FIFA PRESIDENT ADDRESSING A MEETING OF THE GLOBAL FOOTBALL COMMUNITY AT A SESSION IN SAO PAULO ,BRAZIL RECENTLY