The nation's No. 2 burger chain, which has about 12,000 restaurants around the world, blamed still-rising unemployment — along with menu markdowns by competitors — for the financial results it announced Thursday, which were worse than expected.
"This is the worst consumer environment we have seen," Chairman and CEO John Chidsey said during a conference call with investors. "Employment continues to worsen and competitive pressures remain fierce, so it could be some time before we see meaningful sustained improvements."
Last year, fast food restaurants were thought to be relative winners in the recession as price-conscious diners swapped more expensive meals at sit-down restaurants for the industry's speedy and cheap fare.
Overall, Burger King's quarterly profit sank 6 percent to $46.6 million, or 34 cents per share. Revenue fell 5 percent to $636.9 million. During the company's fiscal fourth quarter, revenue dipped 2.4 percent, but profit climbed as the burger company cut costs. Burger King shares fell 5 cents to $17.24 in mid-afternoon trading Thursday.
Pierre-Alexandre Tonin
(Source: Ashley M.Heper from AP)
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