Skip to main content

MIAMI (

TheStreet

) --

Burger King

(BKC)

may have posted earnings growth in its fiscal fourth quarter compared with a year ago, but consumers still aren't biting.

The fast-food restaurant chain said lower costs helped widen its quarterly profit by 16%, handily topping analysts' estimates. But sales continued to slide as more consumers chose to eat at home in order to save money.

Nonetheless, Burger King shares jumped 4% in pre-market trading to $18.38.

Want Want This Stock?: China Watch

Image placeholder title

In its fiscal fourth quarter, Burger King earned $58.9 million, or 43 cents a share, compared with $50.6 million, or 37 cents a share, in the year-ago period. That topped analysts' per-share expectations of a 33-cent profit.

Revenue dropped 2.4% to $629.9 million, while total same-store sales also slipped by the same percentage. The biggest decline was seen in the U.S. and Canada, where comparable sales tumbled 4.5%.

The company has been working to revamp restaurants, introduce premium products, extend hours and add value-menu items to compete with rivals like

McDonald's

TheStreet Recommends

(MCD) - Get McDonald's Corporation Report

and

Wendy's/Arby's

(WEN) - Get Wendy's Company Report

.

Burger King also opened 115 new locations during the quarter.

For the full-year period, the company saw profit rise 6% to $200.1 million, or $1.46 per share, from $189.6 million, or $1.38 a share, last year.

Adjusted profit of $1.48 a share beat analysts' forecasts by ten cents.

Annual revenue rose 3% to $2.54 billion from $2.45 billion.

While management did not issue specific financial guidance for the current year, citing the unpredictability of consumer spending, they did say they expect softer same-store sales in the first half of the next fiscal year, with improvement coming in the second half.

In July

McDonald's saw same-store sales climb 4.3%

, lifted by its McCafe and the Big Mac.

-Reported by Jeanine Poggi in New York.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.