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CORRECTED - UPDATE 1-Burger King profit misses view, keeps outlook
October 31, 2008 / 11:46 AM / in 9 years

CORRECTED - UPDATE 1-Burger King profit misses view, keeps outlook

(Corrects to say fiscal Q1 in bullet points)

*Fiscal Q1 adjusted EPS $0.38 misses Wall St view $0.39

*Q1 sales up 12 percent to $674 million

*Maintains FY EPS outlook $1.54 to $1.59

NEW YORK, Oct 31 (Reuters) - Burger King Holdings Inc BKC.N posted a lower-than-expected quarterly profit on Friday as margins were pressured by high commodity costs and other expenses, but stood by its full-year outlook.

Burger King, best known for its Whopper hamburgers, said net income rose to $50 million, or 36 cents per share, in the fiscal first quarter ended Sept. 30, from $49 million, or 35 cents per share, a year earlier

Excluding costs tied to buying 72 franchise restaurants, Burger King said it earned 38 cents per share, missing analysts’ average expectation for a profit of 39 cents per share, according to Reuters Estimates.

    Total revenue rose 12 percent to $674 million. Sales at stores open at least a year were up 3.6 percent worldwide, with a 3 percent increase in the United States and Canada.

    Burger King, which has more than 11,500 restaurants worldwide, has been sprucing up older eateries, extending hours and adding value menu items to catch up with rivals like McDonald’s Corp (MCD.N) and Yum Brands Inc (YUM.N), the parent of the Taco Bell, Pizza Hut and KFC fast-food chains.

    Burger King maintained its full-year outlook, which calls for 2009 earnings in a range of $1.54 to $1.59 per share.

    The company said it will benefit from moderating food and energy costs. It also continues to expect to open 350 to 400 new restaurants in fiscal 2009. (Reporting by Aarthi Sivaraman; Editing by Derek Caney)

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