Burger King income up 15% in quarter
April 29, 2009
by MEAT&POULTRY Staff
MIAMI — Despite a notable decrease in sales and traffic during the month of March, Burger King Holdings, Inc. still posted a 15% increase in income for the quarter ended March 31.
For the third quarter the company posted income of $47 million, equal to 35c per share on the common stock, which compared with income of $41 million, or 30c per share, during the same quarter of the previous year. Revenue for the quarter was $600 million, up 1% from $594 million during the same quarter of the previous year.
"We continue to post top-line growth even in this challenging macroeconomic environment," said John Chidsey, chairman and chief executive officer. "We delivered our 21st consecutive quarter of worldwide positive comp sales, our annual net restaurant growth remains on track and our cash flow generation remains strong.
"While we performed well in January and February, the unexpected decline in March traffic across many of the countries in which we operate, particularly the Germany and Mexico markets, adversely affected our results. Although disappointed in our company restaurant margins, we are pleased to have been able to offset the earnings impact with continued revenue growth, general and administrative cost reductions, lower interest expense and tax savings. I am also pleased with how the team rapidly readjusted our marketing efforts toward more value focused promotions and menu offerings."
For the nine months ended March 31, the company had net income of $141 million, or $1.05 per share, up 1% from $139 million, or $1.03 per share, during the same period of the previous year. Total revenue was $1,908 million, up 5% from $1,809 million from the same period of the previous year.
The company now expects its full-year 2009 adjusted earnings per share to be in the range of $1.39 to $1.42.
"We continue to grow our top-line in this challenging economic environment with positive April comps and are tactically responding to ever-changing market dynamics," Mr. Chidsey said. "However, due to ongoing market challenges and unknown potential effects of the Swine Flu situation, we are taking a more conservative outlook to our fourth-quarter fiscal year 2009 earnings estimate."