Fast food chain company, Burger King Holdings Inc has seen its fourth quarter earnings come down by as much as 17 per cent. The giant has said that this is the result of falling sales coupled with rising costs of the commodities.
Meanwhile, it has managed to beat the analyst expectations in profit figure, but is still going to follow a cautious approach. Chairman and Chief Executive John Chidsey said while talking to media that the future scenes are going to be tougher and consumption will continue to pose a challenge. This is so because the unemployment has not come down neither there is a rise in consumer confidence.
Burger King ha, to be able to defeat the number 1 in this segment McDonald's, tried to concentrate on breakfast lineup. It has added premium-priced products to the menu and has also added Seattle's Best Coffee, to give competition to Starbucks.
This shows a shift in the target audience of the giant which is now more premium offerings.
Despite this, the sales of Burger King Stores were down 0.7 per cent in US as well as Canada.