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CHICAGO — Burger King Corp. reports results for its fiscal fourth quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: The nation's No. 2 hamburger chain has managed to grow its same-store sales each quarter of the fiscal year. But the key metric of sales in locations open at least a year has consistently trailed competitor McDonald's Corp.'s growth.
To keep pressure on its rival, Miami-based Burger King announced plans during the quarter to add three new Kids Meal options that comply with its pledge to advertise only healthier meals to children.
The three new meals all contain fewer than 560 calories and 600 milligrams of sodium. Consuming lots of sodium can lead to higher blood pressure — a key factor behind heart disease and strokes. Last year, the Whopper's maker pledged to limit calories, fat and sodium in its children's meals and to advertise meals to children under 12 that meet higher nutritional standards.
Also during the quarter, the company's Canadian subsidiaries sold 20 restaurants to franchisee Heartland Food Corp. Terms of the deal weren't disclosed, but the agreement brings Heartland's total Canadian Burger King count to 34.
Heartland is Burger King's third-largest North American franchisee and owns 223 of the chain's restaurants in the U.S.
BY THE NUMBERS: Analysts polled by Thomson Reuters predict a profit of 33 cents per share on revenue of $633.61 million for the quarter. Last year, the company earned 51 million, or 37 cents per share, on revenue of $646 million.
ANALYST TAKE: Deutsche Bank analyst Jason West told investors he expects the company's fourth-quarter same-store sales to fall 3.4 percent in the U.S. and Canada. West said such a drop could mean the hamburger chain won't meet its earnings per share projections.
"However, the key question for the (Burger King) story will be how the company is managing the cost side of the business, now that it has had several months of weak sales," he wrote in a research note last week.
WHAT'S AHEAD: Analysts will be looking for initial guidance on Burger King's next fiscal year.
STOCK PERFORMANCE: During the quarter, which began April 1 and ended June 30, shares fell about 25 percent to end the period at $17.27. They closed Friday at $17.48, near the bottom of their 52-week range of $15.61 to $26.68.
