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New York - Burger King Worldwide reported a better-than-expected third-quarter profit as it slashed costs by franchising more outlets and as the fast-food giant's sales grew outside North America.
The third-largest US hamburger chain, behind McDonald's and Wendy's Co, said expenses fell about 90%, mainly because it refranchised more than 500 restaurants in the past year.
With almost all of its restaurants now franchised, total sales fell about 40% to $275.1m.
Burger King shares, which have risen about 24% this year, rose 3% to $20.32 in premarket trading on Monday.
Global sales at established restaurants rose 0.9% in the quarter ended September 30, well short of the average analyst estimate of 1.9%.
Same-restaurant sales in United States and Canada, where the company last month introduced lower-fat "Satisfries" french fries to offer healthier alternatives, fell 0.3%.
Burger King's same-store sales growth matched that of McDonald's, which reported last week and warned that global sales would be relatively flat in October because of stiff competition and a weak economic recovery.
Burger King reported a 2.4% rise in sales in its Europe, Middle East and Africa business, helped by cheaper prices and online coupons in Germany and Spain.
In Asia Pacific, sales rose 3.7%.
Burger King's net profit rose to $68.2m, or 19 cents per share, from $6.6m, or 2 cents per share, a year earlier.
On an adjusted basis, it earned 23 cents per share, topping the average analyst estimate of 21 cents, according to Thomson Reuters.
Revenue fell about 40% to $275.1m.
Burger King also raised its quarterly dividend to 7 cents per share from 6 cents.
The third-largest US hamburger chain, behind McDonald's and Wendy's Co, said expenses fell about 90%, mainly because it refranchised more than 500 restaurants in the past year.
With almost all of its restaurants now franchised, total sales fell about 40% to $275.1m.
Burger King shares, which have risen about 24% this year, rose 3% to $20.32 in premarket trading on Monday.
Global sales at established restaurants rose 0.9% in the quarter ended September 30, well short of the average analyst estimate of 1.9%.
Same-restaurant sales in United States and Canada, where the company last month introduced lower-fat "Satisfries" french fries to offer healthier alternatives, fell 0.3%.
Burger King's same-store sales growth matched that of McDonald's, which reported last week and warned that global sales would be relatively flat in October because of stiff competition and a weak economic recovery.
Burger King reported a 2.4% rise in sales in its Europe, Middle East and Africa business, helped by cheaper prices and online coupons in Germany and Spain.
In Asia Pacific, sales rose 3.7%.
Burger King's net profit rose to $68.2m, or 19 cents per share, from $6.6m, or 2 cents per share, a year earlier.
On an adjusted basis, it earned 23 cents per share, topping the average analyst estimate of 21 cents, according to Thomson Reuters.
Revenue fell about 40% to $275.1m.
Burger King also raised its quarterly dividend to 7 cents per share from 6 cents.
