Turnaround push's selloffs take a bite out of Burger King profit
Burger King's net income fell 83 percent in the third quarter as the world's second biggest hamburge…Burger King's net income fell 83 percent in the third quarter as the world's second biggest hamburger chain sold off more of its restaurants to franchisees as part of a turnaround push. But the company's adjusted results topped Wall Street expectations, and its shares advanced.
The private investment firm that owns a majority stake in the fast-food chain, 3G Capital, has been working to put the shine back in Burger King's crown since purchasing it in 2010. The firm has been shifting to an entirely franchisee-owned model to cut down on overhead costs and boost profit margins.
The U.S.-based chain that has more than 12,600 locations worldwide.
For the quarter, Burger King said global revenue at stores open at least a year rose 1.4 percent. In the U.S. and Canada, the figure rose 1.6 percent.