Burger King Smoothly Driving Through Economy
Burger King profits drop, with currency swings accounting for the 15% under expectations tally.
"Miami-based Burger King said its net income fell to $44 million . . . from $49 million . . .The miss came mainly from the effect of the stronger dollar . . .
". . . Same-store sales, or sales at locations open at least a year, rose 2.9 percent worldwide and 1.9 percent in the U.S. and Canada." [via AP]
Yet US comps hold up and overseas comps are doing surprisingly well. And get this. There's a menu shift to higher average price points despite a tough economy.
Burger King said its U.S. same-store sales bump also stemmed from raising prices on certain menu items and its mix of value products and those that are a bit pricier, like the company's new Steakhouse XT extra thick burger.
This is a sign of good management.
The second largest burger chain is still on a growing spurt.
Burger King said it still expects to open between 350 and 400 new restaurants during the year.
The company added it will keep adding restaurants to its list of locations that are open 24 hours - a key strategy for the chain to grab market share during late-night hours when teens and young adults are likely to look for a snack.
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