Burger King Holdings posted a stronger-than-expected Q4 profit with net income rising to $51 million from $36 million the year earlier. The company's margins remained under pressure falling to 13.1% from 14.8% a year ago.
Burger King posted a 20 percent rise in quarterly profit on boosted by higher sales at new and remodeled restaurants, value menus and extended hours. The strong performance in the midst of rising food prices indicates that the company's revitalization is gaining traction.
Burger King's second-quarter net profit rose 29% due to a 4.2% increase in same-restaurant sales. Revenue increased by 10% to help boost net profit and average 12-month restaurant sales were up 8% worldwide. BKC's memorable marketing and advertising campaigns were a driving factor in the increase in customer traffic. Burger King stock rose 8.3% from $24.16 USD to $26.26 USD.
On November 5, BKC reported a fiscal first quarter profit increase of 23%. Stock price fell from $27.73 USD to $26.72 USD because the private equity firms that own more than half of BKC stock announced it would be offering 23 million shares.
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