MIAMI — While a challenging economic environment resulted in revenue loss for Burger King Worldwide, Inc., net income more than doubled during the first quarter, driven by cost cuts.
For the quarter ended March 31, income rose 150% to $35,800,000, equal to 10c earnings per share on the common stock, compared with $14,300,000, or 4c per share, during the same period last year. Revenue declined about 42% to $327,700,000 from $569,900,000 during the same quarter of the prior year.
Global comparable sales fell 1.4%, partially offset by growth in Europe, the Middle East, Africa and Asia Pacific regions. U.S. and Canada comparable sales dropped 3% in the quarter but grew in March, when the chain adopted a more balanced approach to value and premium offerings, including the limited-time launches of a turkey burger and Chipotle Whopper.
“While comparable sales growth was not up to our expectations, we made progress toward achieving our target business model and remain committed to executing our Four Pillar strategy in the U.S. and Canada and driving net restaurant growth internationally,” said Bernardo Hees, chief executive officer.In an effort to trim expenses, Burger King refranchised 33 company-owned restaurants in the United States and Canada during the quarter. The company said it expects to complete its refranchising initiative by the end of the year.