Burger King income down 7%, sales off 1%
August 24, 2010
MIAMI — Burger King Corp.’s income for fiscal 2010 was down 7% on decreased sales and foreign exchange rates.
For the year ended June 30, the company posted income of $186.8 million, equal to $1.38 per share on the common stock, which compared with income of $200.1 million, or $1.48 per share, during the previous year.
Revenue for the year was $2,502.2 million, down 1% from $2,537.4 million during the previous year.
“In fiscal year 2010, we faced sustained levels of high unemployment and a fragile global economy that combined made this one of the toughest operating environments in recent history,” said John Chidsey, chairman and chief executive officer. “Even so, we remained focused on our True North Plan and effectively managed the business for the long term. We posted positive worldwide traffic during the last nine months versus the prior-year period, opened 249 net new restaurants during the fiscal year and kept pace with our re-imaging initiative while maintaining a strong balance sheet.
“We also made significant progress with the deployment of new restaurant equipment to enhance operations and our ongoing portfolio management initiative that included the refranchising of 79 restaurants in the U.S. and Germany in the fourth quarter alone.”
For the fourth quarter ended June 30, the company had income of $49 million, or 36c per share, down 17% from $58.9 million, or 44c per share, during the same quarter of the previous year. Revenue for the quarter was $623 million, down 1% from $629.9 million during the same quarter of the previous year.
“As we enter fiscal 2011, we anticipate that the challenging consumer environment will continue due to high unemployment and underemployment levels and weak consumer confidence,” Mr. Chidsey said. “However, our team will continue to invest in all aspects of our business to drive profitable sales. We will do that by focusing on our long-term strategies and delivering against the four pillars of our True North plan — ‘Growing the Brand, Investing Wisely, Running Great Restaurants and Focusing on People.’”