Burger King shows 83% profit drop in return to public trading
Burger King Worldwide Inc. returned to public trading by reporting an 83% drop in its third-quarter profit, from $38.8 million in 2011 to $6.6 million. Revenue fell 26% to $451.1 million from $607.7 million, reports the Los Angeles Times.
The restaurant chain is in the midst of updating its menu, adding items like fruit smoothies and upscale chicken sandwiches. The company has also pledged to switch to cage-free eggs and pork.
"There is no silver bullet. It's not just about marketing or a new product," Chief Executive Bernardo Hees said in a call with analysts.
But the turnaround effort is costly. And heavy competition from similar concepts may have taken a toll. Hees also noted a "challenging global economic environment."
Source: Los Angeles Times