IPO launch costs hit Burger King

Burger King has launched a value menu of items priced at $1

The world's second largest burger chain, Miami-based Burger King, made a fourth-quarter loss in its first report as a standalone public company.

It said it lost $9m (£4.82m) in the three months to 30 June, against a $2m profit a year before.

The figure included a one-off fee of $30m, related to the company's initial public offering (IPO), and other costs.

But the firm said it now expects to benefit from people choosing low-cost eating in a belt-tightening period.

'Cautious consumers'

Chief executive John Chidsey said the Burger King value menu which was performing above expectations.

The value menu in the US is a series of items priced at $1, such as The Whopper Junior burger.

"This is especially relevant in today's economy as consumers are being more cautious with their non-essential spending," Mr Chidsey said.

"We believe the company will benefit as consumers choose quick service restaurants, like Burger King, rather than more expensive fast casual and casual dining restaurants."

The firm has more than 11,000 outlets around the world, with 90% of them being franchises.

Burger King was bought by private equity firms Texas Pacific Group, Bain Capital and a Goldman Sachs Group affiliate in 2002 for about $1.5bn from UK drinks giant Diageo.

Burger King shares have lost ground since they were floated in mid-May at a price of $17.

By 1430 GMT on Tuesday, they were down 15% at $12.90.