This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Burger King Beats, Looks Abroad for Growth

MIAMI ( TheStreet) -- Shares of Burger King Holdings (BKC) pushed higher Tuesday morning after the fast food chain posted better-than-expected fourth-quarter profits.

Burger King booked earnings of $49 million, or 36 cents per share, beating expectations for profits of $45.8 million, or 34 cents per share. Still, results were sharply lower than year-earlier profits of $58.9 million, or 43 cents per share.

Burger King

While earnings topped Wall Street's expectations, Burger King's quarterly revenue came up short as global comparable same-store sales, or sales at stores open at least one year, fell 0.7%. Comps at U.S. and Canadian locations fell 1.5%.

Burger King's performance was pressured by stubbornly high rates of young, jobless males in the U.S., Citi analyst Gregory R. Badishkanian said in an appearance on CNBC.

Burger King said it plans to open between 225 and 275 net new restaurants in fiscal 2011, over 90% of which will be outside the U.S. and Canada.

Rival McDonald's (MCD - Get Report) is also looking to expand abroad.

Last week McDonald's said it raised $29.4 million through yuan-denominated bonds in Hong Kong. McDonald's was the first non-financial multinational company to issue a yuan-denominated bond in China after the country began allowing its currency to be used for cross-border trade last year, though others may be looking to follow suit. Reports indicate that Wal-Mart Stores (WMT) may follow the fast-food purveyor's lead with its own offering.

>>McDonald's Raises Funds in Yuan Bond

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CMG $683.95 0.00%
MCD $94.88 0.00%
WEN $10.40 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs