NEW YORK - Rising Whopper sales failed to translate into bottom-line dollars for Burger King Holdings Corp. in the fiscal second quarter, the fast-food chain said Thursday.
The nation's No. 2 hamburger chain reported that profit fell and missed Wall Street's expectations by 4 cents per share, as the result of a stronger dollar.
Chief Executive John Chidsey said during a conference call with investors that the magnitude of the exchange-rate hit "was more than we forecast or could have anticipated."
The Miami-based company also cut its full-year profit guidance, saying that as long as the dollar remained strong against other currencies, that would hurt Burger King's profit and cut into the benefit fast-food companies are seeing from consumers seeking value during the recession.
Shares tumbled $1.35, or 6.2 percent, to close at $20.51.
The company said the currency translation hurt profit by 5 cents per share in the quarter ended Dec. 31.
The company earned $44 million, or 33 cents per share, compared with $49 million, or 36 cents per share, a year earlier.
Burger King said that, because of the dollar's strength, it now expects to earn between $1.44 and $1.49 per share in 2009, down from $1.54 to $1.59 per share. Analysts expect $1.52 per share.
