NEW YORK — Burger King’s net income fell 83 percent in the third quarter as the world’s second biggest hamburger chain sold off more of its restaurants to franchisees as part of a turnaround push. But the company’s adjusted results topped Wall Street expectations.
The private investment firm that owns a majority stake in the fast-food chain, 3G Capital, has been working to put the shine back in Burger King’s crown since purchasing it in 2010. In addition to unveiling its biggest ever menu expansion and a celebrity-studded ad campaign this spring, the firm has been shifting to an entirely franchisee-owned model to cut down on overhead costs and boost profit margins.
3G’s turnaround push comes amid a time of intensifying competition in the United States, with Taco Bell’s introduction of popular new menu items such as its Cantina bowls and Wendy’s looking to transform into a higher-end burger chain. And McDonald’s Corp. has vowed to intensify its focus on its Dollar Menu and value message.
For the three months, Burger King’s net income fell to $6.6 million, or 2 cents per share. That compares with $38.8 million, or 11 cents per share, last year.