Subscribe to RSS

Burger King Profits Climbs during First Quarter

Posted on 29. Apr, 2013 by in Business, Business Featured

Burger King Worldwide announced on Friday that its profit in the first quarter more than doubled due to lower expenses

Burger King Worldwide announced on Friday that its profit in the first quarter more than doubled due to lower expenses

April 28, 2013 - Burger King Worldwide announced on Friday that its profit in the first quarter more than doubled due to lower expenses that were able to offset same-stores’ negative sales and revenue that was weaker.

Last June, the company became public again following its acquisition by 3G Capital a private equity firm from Brazil in October of 2010. Since that time, Burger King has tried to change its menu to attract a broader base of customers to help it compete better with McDonald’s is chief rival.

During the first quarter of this year, Burger had a profit of $35.8 million equivalent to 10 cents per share, compares to a profit last year during the same quarter of $14.3 million or just 4 cents per share. Revenue was down by 42% to end the quarter at $327.7 million amidst transactions including global refranchising and same store sales that were weaker than expected.

Wall Street analysts had estimated earnings of 17 cents per share and revenue exceeding $307 million. Comparable stores revenues dropped 1.4% in comparison to an increase of 4.6% last year during the same quarter.

In Canada and the U.S., same store revenue was down by 3%, while in Africa, the Middle East and Europe saw minimum growth of just 0.8%. In the Asia-Pacific area, same store revenue was up 2.7%.

Total expenses and operating costs dropped by 54% on lower administrative and payroll expenses and lower food costs. However, property and franchise expenses were up more than 53%.

Daniel Schwartz an executive at the fast food chain will become its CEO July 1. Current CEO Bernardo Hees will take the top spot at H.J. Heinz, the ketchup maker that 3G Capital along with Berkshire Hathaway purchased for $23 billion.

0 comments

Other articlesgo to homepage

Dole CEO in Bid to Buyout Company

Dole CEO in Bid to Buyout Company(0)

June 13, 2013 - CEO and Chairman of Dole Food Co David Murdock along with his family offered to buy the fresh vegetable and fruit business on Tuesday offering a bid that values the complete company at nearly $1.07 billion. The company, based in Westlake Village, California said its board would have a meeting during several

Bangladesh Suppliers Upset over Walmart Ban

Bangladesh Suppliers Upset over Walmart Ban(0)

June 11, 2013 - Just a day after Simco Groups name had been published by Walmart as a banned supplier in Bangladesh, the garment maker found out it lost a J.C. Penney order of half a million pairs of pajamas. The head of operations for Simco, Khurrum Siddique said this could not just be coincidence. He

Inflation slows in China to 2.1%

Inflation slows in China to 2.1%(0)

June 10, 2013 - Consumer inflation in China slowed in May as it grew less than what had been expected by market analysts. The country’s main gauge for measuring inflation, the consumer-price index increased just 2.1% versus May of 2012 and was less than this April’s increase of 2.4%. The figure ended less than what had

Market Volatile Waiting for Jobs Report in U.S.

Market Volatile Waiting for Jobs Report in U.S.(0)

June 07, 2013 - Global stock markets on Friday were volatile as investors were awaiting the release of the May jobs report for the U.S. They are looking for clues to give them an idea on how long the country’s central bank will continue with its stimulus program for the largest economy in the world. Analysts

Amazon entering the Online Grocery Business

Amazon entering the Online Grocery Business(0)

June 06, 2013 - Target, Walmart, Food Lion and others have all received notice. The grocery industry now has a new player that could potentially prove to be a scary challenger. A report says Amazon.com is planning to unveil a grocery business online that has been in development for more than two years. One source that

read more

Headlines

Japanese Stocks continue to fall Japanese Stocks continue to fall
Genocide Trial in Guatemalan Suspended Genocide Trial in Guatemalan Suspended
One Suspect in Boston Killed, one on the run One Suspect in Boston Killed, one on the run
Musharraf Flees as Bail is Revoked Musharraf Flees as Bail is Revoked
read more