Burger King Q2 Revenues Increase

Burger King has revenues of $645.4m for the second quarter of 2010, an increase of 2% compared to $634.1m for the same quarter previous year. Revenues were aided by a worldwide net restaurant growth rate of 2.7%, which positively impacted quarterly revenues by $22.8m.

Second quarter worldwide comparable sales were negative 2% compared to positive 2.9% in the same quarter last year. Comparable sales were negatively impacted by a continued weak labor market, lower discretionary spending and competitive discounting. Net income for the quarter was $50.2m or $0.37 per share compared to $44.3m or $0.33 per share in the same period last year.

In the second quarter, the company increased its worldwide net restaurant count by 95 and reached a 12,000th restaurant located in Beijing’s Joy City. The company also unveiled its new 20/20 restaurant design at Schiphol Airport in Amsterdam. During the last 12 months, the company opened a total of 321 net new restaurants and targets to open 250 to 300 net new restaurants during fiscal 2010.

For the six month period revenues were $946m compared to $970.1m for the same period prior year. Net income for the six month period was $96.8m or $0.71 per diluted share compared to $94.1m or $0.69 per diluted share for the corresponding period prior year.

John Chidsey, chairman and chief executive officer of Burger King, said: “The industry and our brand continued to experience weak consumer spending as global unemployment levels remained high. However, we continue to tactically respond to the current consumer need for extreme affordability with our value promotions while remaining focused on managing the brand for the long-term and investing in the future.

“We added 95 net new restaurants, increased worldwide company restaurant margin and continued to invest in our infrastructure with our North America reimaging program and advanced Point of Sales systems.”