Burger King Restaurant Sales Are Up
Burger King does well as McDonalds falters.
Last quarter, Burger King did better than expected, in contrast to McDonalds worst performance in restaurant sales in nearly a decade.
Executives from the company did not say whether increased restaurant sales and new customers were from McDonalds or other competitors, such as Wendy's, KFC, A&W, Hardees, Carl Jr.s, and other fast food establishments.
Daniel Schwartz, CFO says they expect to keep the share of business they have gained, and sales have continued to grow this October.
sales is a value menu, focusing on affordable food. Customers are also attracted to limited promotions, like the BBQ menu the restaurant had this summer.
The company has worked on getting both more female and elderly customers. Wraps, salads, and smoothies have generally been popular with these demographics.
Traditionally, a lot of Burger King clientele had been younger males. The changes made to its menu are similar to the ones McDonalds made, which has a slightly wider range of customers.
Burger King was up 17 cents a share, which exceeded the 15 cents expected by analysts.
The company which first went public in June had a quarterly dividend, which paid 4 cents/share.
Previously, Burger King had been a private company after it was purchased for over 3 billion dollars by 3G Capital Management, located in Brazil.
Justice Holdings, a shell company, acquired BK in a reverse merger, and made it public.
When shares of the stock first came on the market last summer, they were $14.50. On Friday, there were $14.95. The New York stock market was closed Monday, due to Hurricane Sandy, and is expected to be down Tuesday as well.