Burger King Worldwide reported its first quarter profit more than doubled. The company attributed it to less expense that helped offset the negative sales in same-stores and lower revenue. It went public in June of 2012 after it was acquired by 3G Capital, which is a Brazilian private equity firm, in October of 2010.
Since June of 2012, Burger King has been implementing changes to its menu to help it compete against McDonald’s and other competitors. It included newer meals that don’t include its mainstay Whopper sandwich. The company also started targeting to a broader market outside its core young male demographic.
Burger King earned profits of $25.8 million in the first quarter compared to last year’s profit of $14.3 million. Revenue for the company was lower by 42 percent and closed at $327.7 million that was due to global refranchising changes as well as weaker same-store sales. Analysts expected earnings of 17 cents a share and revenue over $307 million.
Operating and overall expenses dropped by over 54 percent due to lower payroll and administrative expenses as well as the lower cost of food. Franchise and property expenses went up during the same period by 53 percent.
Daniel Schwartz will become CEO of Burger King on July 1. He is the company’s former CFO and presently the COO. The current CEO Bernardo Hees will step down and become the CEO at HJ Heinz, which is the maker of ketchup that was acquired by Berkshire Hathaway and 3G Capital for $23 billion.
