“Come to Jesus” time for Burger King

3 Aug

Burger King who almost seemed indestructible is finally feeling the strains of the economy. John Ivankoe from J.P. Morgan said in a research note Monday that he expected BK’s fiscal fourth quarter same-store sales to fall 3.5 percent from a year earlier. Ivankoe also downgraded BK’s stock prospects because of the declining sales. 

Ivankoe also said, “[Quick-service] sales have slowed since March, and we believe lower year-to-year total employment in the U.S. will remain the major drag over the next six months,” Ivankoe said. “Employment is coincident with need- [and] convenience-based quick-service sales, especially in breakfast and lunch where [Burger King] generates over 65 percent of its business.”

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: