Burger King earnings decline 10% in second quarter

by Keith Nunes
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MIAMI — Burger King Holdings, Inc.’s net income declined 10% during the second quarter of fiscal 2009, ended Dec. 31, 2008, compared with the same period during fiscal 2008. For the quarter, the fast-food business’ net income was $44 million, equal to 33c per share on the common stock, compared with $49 million, or 36c per share, during fiscal 2008. Company sales increased 3% during the quarter to $634 million.

Worldwide comparable same-store sales increased 2.9%, according to the company. In the United States and Canada same-store sales increased 1.9%.

"Our core business remains strong," said John Chidsey, chairman and chief executive officer. "Even in this uncertain economic environment we posted positive comparable sales and accelerated our net restaurant openings. We remain focused on profitably growing the brand by increasing our global footprint, providing our guests with exceptional value for the money dining experience and continuing to strengthen market awareness as a socially relevant brand."

For the first six months of fiscal 2009, Burger King Holdings’ net income was $94 million, or 70c per share, a decline of 4% compared with the previous year when the company had net income of $98 million, or 72c per share. Revenues during the first six months of fiscal 2009 were $1,308 million.

The company updated its full-year guidance to between $1.44 and $1.49, and includes an estimated 10c per share negative impact due to movements in currency exchange rates.

"Our overall strategies remain on course and, as forecasted, we expect to realize earnings improvement in the second half of the fiscal year," Mr. Chidsey said.

During the second half of the year, the company plans to roll out its Steakhouse XT burger in the United States on a regional basis. It also will rely on its recently introduced BK Burger Shots and BK Breakfast Shots value-price menu additions for additional growth.

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