Burger King Holdings swung to a profit in the third-quarter, fueled by sales of new sandwiches at the second-largest hamburger chain.
Net income for the quarter ended March 31 totaled $34 million, or 25 cents per share, versus a loss of $12 million, or 11 cents per share, during the year-ago period.
Revenue at the Miami-based company grew 9 percent to $539 million, from $495 million a year ago.
Analysts polled by Thomson Financial expected net income of 22 cents on revenue of $535 million.
Same-store sales rose 3.2 percent at company-owned and franchise restaurants. About 90 percent of Burger King restaurants are owned by franchisees.
Same-store sales, or sales in stores open at least a year, are a key gauge of restaurant industry performance because they measure growth from existing locations rather than from expansion.
Results were helped by strong premium burger sales, including the Texas Double Whopper, the BK Stacker and the Angus Cheesy Bacon sandwich, Burger King said.
Company restaurant margins increased to 14 percent from 12.9 percent in the same period last year. The improvement came mainly from lower food costs and higher sales at company-owned restaurants.
Net income for the first three quarters was $112 million, or 82 cents a share, compared to $37 million, or 33 cents a share, for the same period in the previous fiscal year. Revenues were $1.64 billion, compared to $1.52 billion.
"We are pleased with our performance year-to-date and are confident about our fourth quarter outlook," Chief Executive John Chidsey said. "We anticipate an increase in comparable sales when the new U.S. late-night hours initiative goes into effect in May."
The company expects to increase net income after items by more than 20 percent this fiscal year. The chain has continued opening new restaurants, including 400 over the past year.
Strong cash flow let Burger King pay down debt with $125 million worth retired so far this year and to pay a dividend of 6.25 cents per share in the third quarter.
