Is Burger King (BKC) -- downgraded on Friday by Citi analysts -- on the verge of losing its paper crown?

Citi analyst Gregory Badishkanian said as much in a note on Friday, in which he downgraded the stock to hold from buy. He noted that same-store sales throughout the month have likely moderated to negative mid-single digits in late April into early May.

Badishkanian said the slowdown is mostly attributable to sluggish breakfast business and competitive pressure on price.

Rival

McDonald's

(MCD) - Get Report

, on the other hand, is expected to ride its current momentum through the rest of the year, CEO Jim Skinner said at the

company's annual meeting earlier this week

.

There are, however, some positives for BK, which could benefit from deep June promotions and easy comparisons. Badishkanian also expects food inflation to moderate and the company's cost-cutting initiatives to benefit margins.

Badishkanian lowered U.S. same-store sales estimate to a 3% decline in the fourth quarter. He also reduced fourth-quarter and full-year earnings estimates to 33 cents and $1.38 cents, respectively. The company's target price was cut to $18 from $22 due to a lower target multiple.

Separately, on Thursday the company announced a quarterly cash dividend of 6 cents a share payable on June 26 to shareholders of record at the close of business on June 10.

Shares of the company were up slightly, by 1.6%, to $16.50 in morning trading.

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