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Earnings Roundup / Burger King

Profit misses expectations

February 06, 2009|Times Wire Reports

Rising Whopper sales failed to translate into bottom-line dollars for Burger King Holdings Corp. in the fiscal second quarter, the fast-food chain said.

The nation's No. 2 hamburger chain reported that profit fell and missed Wall Street analysts' expectations by 4 cents a share owing to the effect of a stronger dollar.

The Miami company also cut its full-year profit guidance, saying that as long as the dollar remained strong against other currencies, that would hurt Burger King's profit and cut into the benefit that fast-food companies are seeing from consumers seeking value during the recession.

Shares tumbled $1.35, or 6.2%, to close at $20.51.

Burger King said the currency translation hurt profit by 5 cents a share in the quarter, which ended Dec. 31. The company earned $44 million, or 33 cents a share, compared with $49 million, or 36 cents, a year earlier.

Revenue rose 3% to $634 million.

Same-store sales, or sales at locations open at least a year, rose 2.9% worldwide and 1.9% in the U.S. and Canada.

Burger King said that because of the dollar's strength, it now expected to earn $1.44 to $1.49 a share in 2009, down from $1.54 to $1.59.

Analysts expect $1.52 a share.

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