Burger King 2Q profit increases 19 percent, tops estimate
MIAMI (AP) -- Burger King Worldwide Inc. said its profit climbed by 19 percent in the second quarter as lower costs and growth overseas boosted results.
The Miami-based company said global sales at established locations rose 0.9 percent. While the figure edged up just 0.4 percent in the U.S. and Canada, it rose 3.7 percent in Asia.
Traditional fast-food chains such as Burger King and McDonald's have been struggling to boost sales in the U.S., with more people heading to places such as Chipotle and Panera. But Burger King has been focusing on striking deals with local operators in developing markets to build more restaurants.
The company has more than 13,000 locations globally, compared with more than 35,000 for McDonald's. Burger King executives have said that gives them considerable room for expansion around the globe, particularly because Burger King is such a well-known brand.
For the quarter, Burger King said profit increased to $75.1 million, or 21 cents per share. Adjusted for one-time gains and costs, earnings came to 25 cents per share, which was two cents above what Wall Street expected.
A year ago, it earned $62.9 million, or 18 cents per share.
Revenue declined 6.1 percent to $261.2 million. That was below the $263.3 million analysts expected, according to Zacks Investment Research.
Burger King shares have risen $3.52, or 15 percent, to $26.38 since the beginning of the year. The stock has increased $6.62, or 34 percent, in the last 12 months.