Burger King continues to grow, declares first dividend

by FoodBusinessNews.net Staff
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MIAMI — Burger King Holdings Inc. delivered strong results for the second quarter ended Dec. 31 as its restaurants performed well in every region worldwide.

Net income for the period totaled $38 million, equal to 28c per share on the common stock, an increase of 41% from $27 million, or 25c per share, in the second quarter of 2006.

Net sales for the quarter rose 9% to $559 million, compared with $512 million in the same period last year. Comparable sales rose roughly 4% worldwide and in North America.

John W. Chidsey, chief executive officer of Burger King, attributed the company’s continued success to its popular Value Menu, recently expanded into its breakfast category, and the company’s innovative marketing and merchandising campaigns. This includes the successful Xbox video game collection, of which 3.2 million copies were sold, increasing sales and restaurant traffic, Mr. Chidsey said.

The company’s strong performance and consistently generated cash flow have led it to issue its first quarterly dividend as a public company March 15. A dividend of 6.25c per share will be distributed to shareholders of record as of the close of business Feb. 15.

"We’ll keep achieving strong results by building on the foundation we’ve set: To maintain a dynamic product pipeline of great food at great prices; to open new restaurants; to continue to launch innovative and compelling marketing and advertising campaigns; to lead the way in operational excellence; and to follow our commitment to the Have It Your Way brand promise," Mr. Chidsey said.

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