Burger King delivers satisfying earnings
Investors embrace a whopping increase in profits from the fast-food rival.
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.
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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