Burger King: profit up, but margins squeezed

Miami / FL. (bk) Worldwide profits at Burger King, second-largest United States´ hamburger chain after McDonald´s, rose by 42 percent in the firm´s fourth financial quarter, reaching 51 million USD. The fast food company, which has more than 11’500 restaurants in 73 countries, announced full-year profits of 190 million USD, a 28 percent increase on the previous twelve months. Revenues rose by nine percent in the fourth quarter to 646 million USD, with full-year revenues reaching 2,45 billion USD, a ten percent rise. Burger King Holdings Inc. said it had added more value foods to its menus.

Burger King´s complete press release «Strong Global Comparable Sales and Substantial Net Restaurant Expansion Drive Robust Fourth Quarter and Annual Results at Burger King» is available here.

Investors were not too impressed by the profit gain at the chain, sending the company´s stock down seven percent as they focused instead on higher food costs and expenses for sprucing up older locations – U.S. media reported.