Burger King said today that its third-quarter net income fell 83% as revenue was hurt by the stronger dollar.
But its adjusted results topped expectations.
The number two worldwide fast-food chain today reported results from its first quarter since returning to being a public company.
"We completed our first full quarter as a public company with continued positive momentum despite the challenging global economic environment," said CEO Bernardo Hees.
For the three months ended September 30, net income fell to $6.6m, or 2 cents per share. That compares with $38.8m or 11 cents per share, last year.
Net income excluding one-items totaled 17 cents per share. Analysts had expected 15 cents a share.
Revenue fell 26% to $451.1m, while analysts had expected revenue of $439.7m.
Much of the revenue hit came from the company selling company-owned stores to franchisees. Burger King has struck deals to expand in China and Russia through partnerships with franchisees. During the quarter it refranchised 221 restaurants, including 182 in the US and 39 abroad.
Revenue from company-owned stores fell 42% to $244.6m from $422.8m. Franchise and property revenue rose 12% to $206.5m from $184.9m.
In the US and Canada, revenue in restaurants open at least a year rose 1.6%. The measure is key because it excludes stores that open or close during the year.
After losing market share to rivals, the US-based company was purchased in 2010 by private equity firm 3G Capital. Since then, 3G has been working to trim expenses and revive the struggling chain. Burger King returned to the public markets soon after, debuting on the New York Stock Exchange in June.
