Burger King net income up $10M in fiscal 2009
August 25, 2009
by Bryan Salvage
MIAMI — Burger King Holdings Inc. announced that for the fourth quarter ended June 30 that net income was $58.9 million, compared to $50.6 million in the same year-earlier quarter. For the year, net income was $200.1 million versus $189.6 million from the year earlier.
Revenues for the fourth quarter of fiscal 2009, however, were $629.9 million, down 2% compared to the same quarter last year. For the fiscal year, the company reported revenues of $2,537.4 million, up 3% over the same period last year.
Consumers continued to shift toward affordability as economic pressures and uncertainties persisted, the company relayed. In response, EMEA/APAC offered value-driven promotions such as the King Deals in Germany, U.K. and Spain, and the Latin America business segment featured the Come Como Rey (or Eat Like a King) everyday value menu in Mexico. In the latter half of the fourth quarter, marketing efforts in the U.S. tactically focused on value with the $1 Whopper Jr. sandwich and local market value promotions, such as two for $3.50 Whopper sandwiches and two for $3 chicken sandwiches across many cities.
"In fiscal 2009, we completed six consecutive years of positive comparable sales growth, achieved record revenues, generated strong cash flow from operations and increased net restaurant count by 360, our strongest development year in almost a decade," said John Chidsey, chairman and chief executive officer.
As the company enters into fiscal 2010, some macro-indicators suggest a stabilization of world economies is underway, Mr. Chidsey added.
"However, we anticipate that the challenging consumer environment will continue due to high unemployment levels, which has resulted in a significant reduction in out-of-home eating expenditures," he said. "Our long-term strategies remain on course and we are committed to tactically respond to an ever-changing consumer dynamic. Our marketing campaigns and menu options will focus on the brand equities that we believe give us a distinct competitive advantage — flame-broiled taste, quality and size at affordable prices."