Burger King Faces High Beef Costs, but Sees Relief Ahead
Dow Jones10-29
1005 ET - The soaring high cost of beef continues to be a thorn in the side of Burger King franchisees, dragging their profits, but CFO Sami Siddiqui says he sees green shots of relief sprouting. Record beef inflation has created profitability headwinds for franchisees of the burger chain, and the effect has pushed out the timeline for store remodels despite an 8.4% surge in U.S. same-store sales. "With just beef costs and record high of beef, inflation has been a headwind to the system's profitability," Siddiqui says on the company's earnings call. "The good news is we're starting to see a little bit of relief on that front, and we expect to see a little bit more next year," he adds.
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