Turnaround push's selloffs take a bite out of Burger King profit
October 31, 2012, 12:02 am TWN
NEW YORK--Burger King's net income fell 83 percent in the third quarter as the world's second biggest hamburger chain sold off more of its restaurants to franchisees as part of a turnaround push. But the company's adjusted results topped Wall Street expectations, and its shares advanced.
The private investment firm that owns a majority stake in the fast-food chain, 3G Capital, has been working to put the shine back in Burger King's crown since purchasing it in 2010. The firm has been shifting to an entirely franchisee-owned model to cut down on overhead costs and boost profit margins.
The U.S.-based chain that has more than 12,600 locations worldwide.
For the quarter, Burger King said global revenue at stores open at least a year rose 1.4 percent. In the U.S. and Canada, the figure rose 1.6 percent.