Burger King shares jump as earnings hum

Burger King's third-quarter income soared and the fast food chain raised its dividend as the company reported an 111% net restaurant growth Monday.

Company shares rose nearly 5.5% to $20.84 shortly after U.S. financial markets opened.

The Miami-based hamburger giant reported earnings of $68.2 million for the three months ending at Sept. 30. That was up sharply from the $6.6 million the company reported for the same period last year.

MERCK: Reports profit drop

Adjusted diluted earnings per share were 23 cents. That topped the 21 cents per share forecast by analysts reported by Thomson
Financial Network.

The company reported net restaurant growth of 133 locations, up sharply from the same period last year.

System-wide comparable sales growth rose 0.9% for company-owned and franchise locations open at least one year. The measure is viewed as a key indicator of a restaurant business' financial health.

Burger King raised its dividend to 7 cents per share, a one-cent increase.

"We grew comparable sales across all three international regions and opened 133 net new restaurants globally," said Burger King CEO Daniel Schwartz in a statement issued with the earnings report. Citing the company's recent U.S. and Canada launch of Satisfries, a "better-for-you French fry," he said "we believe that new products like this, combined with our focus on improving operations will enhance the guest experience and drive increased restaurant profitability."

Since its 2010 acquisition by global private investment firm 3G Capital, Burger King has been trying to cut overhead expenses by selling more of its restaurants to franchisees. Founded in 1954, the company has more than 13,000 restaurants in 91 countries worldwide.