Burger King Beats Q1 Estimates (BKW)

Fast food chain, Burger King Worldwide Inc. (NYSE: BKW) reported on Friday that fiscal first quarter profit increased more than two times as cost cutting measures helped offsetting sharp decline in revenue.

As competition is intensifying in the U.S. fast-food market, Burger King is focusing more on international markets to fuel growth. Currently, about 50% of its stores are located in international locations. Earlier in December, the fast-food chain announced its plans of entering six-country master franchise agreement with Beboca LTD in Central America.

For the quarter, Burger King reported a net income of $35.8 million or 10 cents a share compared to a profit of $14.3 million or 4 cents a share, in the year earlier quarter. Excluding onetime items such as amortization and certain operating expenses, adjusted or non-GAAP earnings stood at 17 cents a share, compared to 11 cents a share, in the same quarter of last year.

Revenue during the period quarter slumped 42% to $327.7 million.

Analysts’ consensus estimate was for earnings of 17 cents a share, on revenue of $307 million, according to a data compiled by Thomson Reuters.

System wide comparable-store-sales declined 1.4% compared to a rise of 4.6% in the same period of last year.

While operating costs and expenses, which include food, administrative and payroll costs fell 54%, property and franchise expenses climbed 53%.

Same-store sales, a key gauge on retailer’s performance, fell 1.3% in the U.S. and Canada; it declined 1.3% in Latin America, edged up 0.8% in Europe while it climbed 2.7% in Asia-Pacific region.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.