Average: “an estimation of or approximation to an arithmetic mean”–Webster
Burger King (BKC) is the perennial also-ran in the fast food market in which its runs well behind McDonald’s (MCD). Burger King’s shares have underperformed those of McDonald’s and two other rivals–Yum Brands (YUM) and Wendy’s/Arby’s Group (WEN)–during the last year. Burger King’s last earnings report for the quarter that ended December 31 was lackluster.
The fast food company’s revenue rose only 4% to $477 million. Income from operations was up only 2% to $88 million. Burger King pointed to two of its most important accomplishments for the period–the “affordable” $1 1/4 lb. Double Cheeseburger and a “strong indulgent product mix including our Steakhouse XT(TM) burger.”
Burger King followed it quarterly financial results with an announcement that it would sell Starbucks (SBUX) Seattle’s Best Coffee at its outlets. The Starbucks product replaces BK Joe brew which Burger King had sold since 2005. BK Joe must not have been good enough for the customers during all of those years.
The less than mediocre results earned CEO John W. Chidsey nearly $5.5 million in the 2009 fiscal year according to the company’s proxy. Over $1 million of that was cash. In addition, Mr. Chidsey is entitled to private charter jet usage for personal use of up to $100,000 per year. He also gets personal use of a car service. The employees in his restaurants don’t do nearly as well
Douglas A. McIntyre