Burger King Worldwide Inc. (NYSE: BKW) reported third-quarter 2013 results before markets opened Monday morning. The fast-food operator posted adjusted diluted earnings per share (EPS) of $0.23 on revenues of $275.1 million. In the same period a year ago, the company reported EPS of $0.17 on revenues of $455.7 million. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.21 and $266.59 million in revenues.

On a GAAP basis, EPS for the quarter totaled $0.19, compared with $0.02 in the same period a year ago.

Burger King is primarily a franchiser, with almost 7,300 of its nearly 7,500 U.S. stores operated by franchisees. The global percentage is similar. The company cut its total restaurant expenses from $216.3 million in the third quarter a year ago to just $22.9 million this year. Total operating expenses have fallen from $361.9 million to $129.6 million, a cut of 64.2%.

Revenues from company-owned stores fell from $244.6 million to $27 million, while revenues from franchises and properties rose from $211.1 million to $248.1 million. The overall decline in revenues was 39.6%, but with costs falling by half again as much, it is not hard to see how the business model works.

The company’s CEO said:

Our positive momentum continued in the third quarter, as we delivered double-digit organic EBITDA growth and industry best-in-class margins. We grew comparable sales across all three international regions and opened 133 net new restaurants globally.

Burger King did not offer guidance in its announcement, but the consensus estimates call for fourth-quarter EPS of $0.23 and full-year EPS of $0.81. The consensus revenue estimate for the fourth-quarter is $274.61 million, and for the full year the estimate is $1.14 billion.

The company’s shares were up about 1.6% in premarket trading, at $20.00, after closing Friday at $19.76 in a 52-week range is $14.48 to $21.73. Thomson Reuters had a consensus analyst price target of around $20.00 before this report.

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