[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 1 August 2006, 14:52 GMT 15:52 UK
IPO launch costs hit Burger King
Burger King sign
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.


SEE ALSO
Burger King chief Blum quits post
02 Jul 04 |  Business
Coke says sorry to Burger King
12 Aug 03 |  Business
Burger King sold for $1.5bn
13 Dec 02 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific