Burger King: Q2 Earnings Top Forecasts

The chain is concentrating on adding more locations overseas

   

Burger King: Q2 Earnings Top Forecasts

Burger King Worldwide (NYSE:BKW) announced that it earned $48.2 million during the second quarter, up 60% from $30.2 million in the same period last year.

Revenue for the quarter fell to $540.8 million, down 9% from $595.4 million in 2011.

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Adjusted EPS came in a 17 cents, topping Wall Street estimates of 14 cents, Reuters noted.

The company, which returned to public trading without an IPO in June, said that same-store sales for locations open more than a year rose 4.4% compared to last year.

Facing intense fast food competition in the U.S. and Canada, Burger King has increasingly concentrated on opening stores in overseas markets. In June, the company announced plans to open 1,000 restaurants in China by 2019.

The company has also partnered with Russian franchisees to launch hundreds of new locations across Russia in coming years.

In fact, 80% of Burger King locations opened in the past year are in the Middle East, Europe and Africa.

Burger King, which has also scrambled to add new menu items and update its restaurants, currently has 12,600 locations worldwide, less than half of the 33,000 locations of its arch-rival McDonald‘s (NYSE:MCD).

Shares of Burger King rose fractionally in Wednesday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/burger-king-q2-earnings-top-forecasts/.

©2014 InvestorPlace Media, LLC

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