Burger King (BKC) reported strong Q3 results led by global business momentum and raised fiscal year guidance. Then as you read the press release and I mean read, for nine full paragraphs, until you realize that the margins are starting to shrink dramatically. Overall sales growth has been strong enough to overcome the problem and create a bottom line. But the problem persists. Management points to two major factors. The rather large spend on rebranding stores which temporarily takes a large bite out of margins. As well the cost of food and paper has gone up. The rebranding can be u[...]
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[Source: The Money Blogs]
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