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Sep 21, 2008 7:36 pm US/Eastern
Burger King Reports Profit Amid Shaky Economy
MIAMI (CBS4) ―
Miami-based Burger King is staying strong despite a faltering economy, boasting a profit in the third-quarter fueled by new sandwich sales.
The second-largest hamburger chain reported a net income of $34 million for the quarter, which ended March 31. That's a major turn-around compared to the loss of $23 million reported a year ago.
Strong cash flow let Burger King pay down debt with $125 million worth retired so far this year and to pay a dividend of 6.25 cents per share in the third quarter.
Overall, Burger King's revenue grew 9 percent in one year to $539 million. Officials say results were helped by strong premium burger sales, including the Texas Double Whopper, the Angus Cheesy Bacon sandwich, and the BK Stacker.
"We are pleased with our performance year-to-date and are confident about our fourth quarter outlook," Chief Executive John Chidsey said. "We anticipate an increase in comparable sales when the new U.S. late-night hours initiative goes into effect in May."
About 90 percent of Burger King restaurants are owned by franchisees. The chain has opened 400 new restaurants over the past year. Restaurant margins increased, mainly due to lower food costs and higher sales.
(© MMIX CBS Television Stations. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. CBS4 news partner The Miami Herald contributed material for this report)
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