MIAMI — Burger King Holdings Inc. has announced its preliminary results for the company's third quarter.
Revenues for the quarter were $600 million, up 1 percent over the same quarter last year, driven by a trailing 12-month net restaurant count increase of 355 and worldwide positive comparable sales of 1.0 percent, partially offset by $44 million due to currency exchange rate fluctuations. United States and Canada positive comparable sales were 1.6 percent. All comparable sales figures reflect an approximate one point negative calendar shift as third quarter fiscal 2008 included an extra day due to leap year.
April to-date, the company has experienced improvements in comparable sales, primarily due to the calendar shift of the Easter holiday and initiatives implemented in Germany and Mexico. Additionally, worldwide company restaurant margins continue to benefit from improving commodity costs.
Worldwide company restaurant margins were lower than expected primarily due to an unanticipated traffic slowdown in the month of March across most company-owned restaurant markets. Germany, the company's second largest company-owned restaurant market, and Mexico, the only company-owned market in Latin America, experienced the largest declines.
In response to the consumer slowdown in these two markets, the company has taken immediate actions to reignite sales. In Germany, the initiatives include a new promotional concept called 'King Deals' or value-priced combo meals; the re-launch of the €0.99 value menu; increased competitive hours of operation during the breakfast daypart with expanded product offerings and an increase in advertising expenditures aimed at promoting the company's value message.
In Mexico, the company will aggressively promote its Come Como Rey (or Eat Like a King) everyday value menu featuring the Whopper Jr. sandwich via a nationally televised advertisement, and has launched a cross-promotional national coupon campaign with VIVA, Mexico's largest premium laundry detergent brand. In addition, advertising expenditures aimed at promoting value and everyday affordable indulgence have been increased.
At this time, the company is completing its financial close for its fiscal 2009 third quarter and will provide additional information on the quarter and an outlook for the full fiscal year as part of its quarterly earnings release and webcast scheduled on April 29.
