By Tess Stynes
Burger King Worldwide Inc. said its fourth-quarter earnings rose
37% as its refranchising effort lowered costs and same-store sales
improved.
The fast-food chain said it has refranchised a net 360 of its
restaurants in 2013.
The company also has introduced menu items that helped increase
sales in the quarter, namely its Satisfries--a lower-fat,
lower-calorie french fries--and its "Big King" burger. Although
Burger King offered a sandwich it called Big King for a limited
time in 1997, it didn't have a middle bun--but now it does, just
like bigger rival McDonald's Corp. Big Mac.
In the latest period, same-store sales grew 1.7%, including an
increase of 0.2% in the U.S. and Canada despite a strong prior-year
comparison.
Burger King reported a profit of $66.8 million, or 19 cents a
share, up from $48.6 million, or 14 cents a share, a year earlier.
Excluding franchising-related charges, stock-based compensation and
other items, adjusted earnings rose to 24 cents from 23 cents.
Revenue decreased 34% to $265.2 million. Excluding currency
fluctuations and refranchising impacts, systemwide rose 5.7%.
Analysts polled by Thomson Reuters expected per-share profit of
23 cents and revenue of $270 million.
Total company restaurant expenses declined 89%.
Burger King also has been aiming to expand internationally,
including plans for restaurants in South Africa and nearby
countries, as well as joint ventures in France and India.
Write to Tess Stynes at tess.stynes@wsj.com
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