Burger King Holdings Inc reported higher-than-expected quarterly profit as it kept a tight rein on expenses, sending shares up 1.7 percent. Yet the fast-food chain, known as home of the Whopper, said its business would remain under pressure in the new year because of lingering unemployment and government austerity programs in several European countries.
Burger King is more vulnerable to a weak job market than rivals McDonald's Corp and Wendy's/Arby's Group Inc because a larger share of its customers are young males, a group that has suffered massive job losses in industries like construction and manufacturing.
The second-biggest US hamburger chain after McDonald's had net income of $49 million, or 36 cents a share, in the fiscal fourth quarter ended June 30, down from $58.9 million, or 44 cents a share, a year earlier.
Burger King said foreign currency exchange rates reduced fourth-quarter earnings by 1 cent per share. Revenue slipped 1 percent to $623 million, falling short of analysts' expectation for revenue of $635 million.
World-wide sales at restaurants open at least 13 months were down 0.7 percent, driven by a 1.5 percent drop in the United States and Canada.