27 Aug 2010
Declining sales affect Burger King's net income
BY Pete Hayman
Fast food restaurant operator Burger King has reported a 17 per cent drop in net income for the three months ending 30 June after seeing a decline in like-for-like sales.
Global like-for-like sales decreased by 0.7 per cent, compared with the same period in 2009, which was partly due to a 1.5 per cent decrease in sales at its US and Canadian operations.
The company also revealed a 2 per cent increase in total operating costs and expenses during the three-month period and said that it expects conditions to remain tough going into the new financial year.
Burger King chair and chief executive officer John Chidsey said: "As we enter fiscal 2011, we anticipate that the challenging consumer environment will continue due to high unemployment and underemployment levels and weak consumer confidence."
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