Burger King Earnings – We’re Satisfried

Burger King Worldwide’s (BKW) drastically revamped business model post its acquisition by investment firm 3G Capital seems to be working out just fine. The fast food giant served up some good news in its third quarter earnings announcement for fiscal year 2013 (3QFY13).

Earnings were 35% higher from the year-ago quarter to $0.23 per share, even though revenues were down 32% to $274.5 million. Net income for the quarter grew nearly tenfold to $68.2 million from a mere $6.6 million in 3QFY12.

With a stellar increase in margins and a return to sustainable profitability, Burger King has surprised the industry especially since McDonald’s (MCD) – even though it beat analyst estimates for the third quarter earnings season – saw a slowdown in organic same store sales. MCD.

Healthy Eating Means Slim Profits for Fast Food Restaurants

It seems as though the health movement is gaining momentum across America. According to a recent Harris Interactive study on food choices, 56% of the respondents said they were likely to choose a restaurant based on their health and dietary needs. In another recent survey, one in three Americans said they wish to eat healthy – and restaurants across the country seem to be obliging.

Fast food chains, over the years, have been in the news for all the wrong reasons. Studies linking child obesity with the consumption of fast food have given a bad reputation to fast food in general, and no other company has been affected as much as McDonald’s.

After experiencing declining sales across a majority of its locations in the US and Europe this year, McDonald’s recently added the ‘healthy’ McWraps to its permanent menu. The company has also stated that it will add more healthy items to its Happy Meal menu for kids, including fruits, vegetables and low-calorie beverages. Read more about Healthy Eating.