Burger King delivers satisfying earnings

Investors embrace a whopping increase in profits from the fast-food rival.

By Motley Fool Investor Beat Oct 28, 2013 1:16PM
Fast-food chain Burger King Worldwide (BKW) reported third-quarter earnings Monday 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 the Satisfries (pictured), as well as changing menus to bring more customers in. Undated handout image from Burger King, showing the new “Satisfries” that the company says has 20 percent fewer calories than its regular fries (© Noel Barnhurst/Burger King/AP Photo)

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 a penny to 7 cents, which may signal further growth for dividend investors.

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