Burger King comps up 2.5% for fiscal year
July 31, 2006
MIAMI — Burger King Holdings reported its performance for the fiscal year, which ended June 30, 2006.
Comparable sales growth system-wide in the United States and Canada rose by 2.5 percent for the period and by 2 percent for the fourth quarter, the ninth straight quarter of positive comps. Comparable sales growth worldwide increased by 1.9 percent for the fiscal year and by 1.7 percent for the quarter, the 10th consecutive quarter of positive comps.
Net income was $27 million for fiscal year 2006 as compared to $47 million for fiscal year 2005. The company cited management termination fees and make-whole payments as causes for the decrease.
Burger King said revenues hit $2.05 billion, an increase of 6 percent from the previous fiscal year. Average restaurant sales worldwide rose to an all-time high of $1.13 million for the fiscal year.
"Our Value Menu, which was introduced system-wide in the United States in March, is performing above expectations, and we believe this is especially relevant in today's economy as consumers are being more cautious with their non-essential spending," said John W. Chidsey, chief executive. "We believe the company will benefit as consumers choose quick-service restaurants, like Burger King, rather than more expensive fast-casual and casual-dining restaurants."
