Recession, what recession? Must be Burger King’s mantra as of late. The company just posted its 19th straight quarter of positive growth. Burger King Holdings Inc. posted higher sales in North America and stood by its full-year profit forecast in the face of an economic downturn. The world’s No. 2 hamburger chain said sales at global stores open at least one year rose 3.6 percent. Same-store sales in North America were up three percent, helped by menu items like Apple Fries and Kraft Mac & Cheese.
Burger King reiterated it will add 350 to 400 restaurants this year. The company has said 80% of these will be in international locations. About 65% of Burger King’s revenue comes from the U.S. and Canada. Revenue rose 12% to $674 million from $602 million, Burger King said.
Analysts are attributing this success on the consumer’s traffic from traditional sit-down restaurants. The closure of the nationwide chain Bennigan’s is proof of this movement. Prices for ingredients such as beef, cheese, and oil, all essential to the fast-food menu, were high earlier in the year, but restaurants have been hesitant to pass those costs along to cash-strapped consumers. Chief Executive John Chidsey said, “Going forward, we expect earnings will benefit from already moderating food and energy costs.”
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