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Whopper Sales Help Burger King's Income

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The Associated Press

Published: February 1, 2008

MIAMI - Burger King Holdings said Thursday that its second-quarter profit jumped 29 percent as the stalwart Whopper, the new Homestyle Melt and promotions with TV tie-ins fired up worldwide sales.

The chief executive of the world's No. 2 hamburger chain said he expects the company to exceed its previous guidance of 12 percent to 15 percent growth in earnings per share this fiscal year.
Burger King said net income for the quarter rose to $49 million, or 36 cents per share, from $38 million, or 28 cents per share a year earlier. Analysts polled by Thomson Financial expected earnings of 32 cents per share.

Revenue rose 10 percent to $613 million from $559 million in the second quarter of fiscal 2007. Analysts predicted revenue of $597.1 million.

Shares rose $2 to $26.16 on Thursday.

Worldwide same-store sales, or sales at locations open more than a year, rose 4.5 percent in the second quarter. Same-store sales are a key indicator of performance. Industry leader McDonald's Corp. said Monday that its same-store sales were flat in December and up only 1.5 percent so far in January.

Burger King's average restaurant sales increased 8 percent to $1.25 million, compared with $1.16 million for the prior year's second quarter.

Chief executive John Chidsey said strong sales helped the company outrun the growing cost of beef, chicken and cheese.

"Our results this quarter substantiate our ability to outperform the restaurant industry despite macroeconomic pressures," Chidsey said. "The third quarter is off to a great start with strong January comps driven by traffic."

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