Burger King: Decent Q3, But Sector Concerns Persist

At least initially, investors were impressed by hamburger chain Burger King's (BKC) beat of Wall Street's third quarter earnings estimate, 30 cents compared to the First Call estimate of 29 cents, with its shares jumping 3.5% to $21.41 on Thursday at mid-day.

Further, investors appeared to cut Burger King some slack, as the winter quarter's severe weather artificially depressed traffic. Chief Executive Officer John Chidsey said sales increased in March and were slightly higher in April, although they were still lower compared to a year ago. Burger King earned 34 cents in the third quarter of fiscal 2009.

Otherwise, the problematic restaurant revenue trend continued at BKC. Worldwide, same store sales declined 3.7% in the third quarter, including a 6.7% decline in the large U.S./Canada market. Worldwide restaurant margins dipped to 11.3% from 11.7% a year ago.

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Burger King: Decent Q3, But Sector Concerns Persist originally appeared on BloggingStocks on Thu, 29 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

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