Share “Burger King 1Q earnings soar, revenue shrinks”

Burger King 1Q earnings soar, revenue shrinks

Published on NewsOK Modified: April 26, 2013 at 6:05 pm •  Published: April 26, 2013

In the first quarter, the company's restaurant revenues tumbled 69 percent to $121.1 million, but its franchise and property revenues rose 19 percent to $206.6 million. The company sold 33 company-owned restaurants in the U.S. and Canada to franchisees during the quarter for $9.3 million.

Burger King said about 97 percent of its restaurants are owned and operated by independent franchisees.

The company's selling, general and administrative expenses also fell about 30 percent to $66.7 million in the quarter.

3G Capital also has slashed costs, signed international expansion deals and changed the U.S. menu to appeal to a wider audience. The moves came ahead of the company's return to public trading on the New York Stock Exchange last June.

Burger King says its efforts to revamp the brand remain on track. But CEO Bernardo Hees, a 3G partner, is moving on later this year to head Heinz, another 3G investment. Chief Financial Officer Daniel Schwartz, also a 3G partner, will succeed Lees as CEO at Burger King.

Burger King shares rose 21 cents, or 1.2 percent, to close at $18.27 Friday. They have traded between $12.91 and $20.20 since relisting.