Burger King's Satisfrying 3rd-Quarter Earnings
Fast-food chain Burger King Worldwide reported third-quarter earnings this morning, sending shares up around 5%.
Sales came in higher than expected, and overseas growth did most of the heavy lifting. However, Burger King reported that revenue was down 40% year over year, though profits increased 32%. This profit growth was primarily aided by a whopping 64% drop in operating costs. CEO Daniel Schwartz expects Burger King to end the year "strong," but gave no particulars on guidance for the fourth quarter.
Management is aiding this growth by introducing new products (like Satisfries), as well as changing menus to bring more customers in. Though Burger King shares are up nearly 25% year to date, Motley Fool analyst David Meier doesn't like this stock for growth investors. However, David believes this stock may be a better option for income investors. Burger King announced it will be raising its dividend by $0.01 to $0.07, which may signal further growth for dividend investors.
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The article Burger King's Satisfrying 3rd-Quarter Earnings originally appeared on Fool.com.David Meier has no position in any stocks mentioned. Erin Kennedy has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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