Burger King cautious over next quarter

Burger King, the US-based hamburger chain, has reported a 15% rise in net profit to $47m (£31.9m) in the first three months of the year.

Chairman and chief executive John Chidsey says however, due to “ongoing market challenges” and the potential effects of the swine flu virus, it is taking a more conservative outlook in the next quarter.

Despite a slow down in sales during March, revenues rose by 1% to $600m (£407.5m).

Countries such as Germany and Mexico faired weaker compared to the US. The company says it has since bolstered its promotional activities in those countries to appeal to cash strapped consumers, with the launch of value-priced combo meals.

Fast-food chains have generally benefited from the economic downturn as consumers opt for lower priced meal options.

The results follow news last week that McDonald’s saw a 4% rise in first quarter profits to $979.5m (£663.8m) compared to the same period last year.