For the quarter ended June 30, the company had net income of $62.9 million, equal to 18 cents earnings per share on the common stock, compared with $48.2 million, or 14 cents per share, during the same quarter of the previous year. But total revenues for the quarter dropped 49 percent to $278.3 million, from $540.8 million during the same period of the previous year.
“Strength in EMEA and APAC helped drive a return to positive comparable sales in the second quarter,” said Daniel Schwartz, CEO. “We continued to accelerate international growth with 125 net restaurant openings, primarily in China, Turkey, Russia and Brazil, which could not have been possible without the solid execution of our experienced joint venture and master franchisee partners on the ground.”
Additionally, the company refranchised 305 restaurants during the quarter, nearly completing its end-of-year goal to become a fully-franchised business model.
“This model is designed to efficiently leverage the strength of the Burger King brand while maximizing value for franchisees and shareholders,” Schwartz said. “We believe that our proven strategy, world-class employees and high-performance culture will allow us to continue to generate sustainable, long-term growth.”
System-wide comparable sales grew nearly 1 percent during the quarter, driven by 3 percent growth in the Europe, Middle East and Africa region and 4 percent growth in the Asia Pacific region, offsetting a sales slide in US and Canada and Latin America and Caribbean markets.
While value-based promotions and limited-time premium offerings, including the summer barbecue menu, helped drive traffic in US and Canada restaurants, comparable sales declined nearly 1 percent in the quarter, due to a challenging macroeconomic environment, more competition and a stronger prior year performance.
For the first six months of the fiscal year, Burger King had net income of $98.7 million, or 28 cents per share, up 58 percent from $62.5 million, or 18 cents per share, during the same six-month period of the previous year. Total revenues for the six months ended June 30 were $606 million, down 45 percent from $1,110.7 million.