Euro revival hikes BK profits

A turnaround in its European business helped boost Burger King's annual operating profits by 12% to £179m in the year to 30 June.

A £10m drop in turnover to £869m (which includes sales by owned outlets and royalties from franchises) was blamed on the strong pound and exchange rates. Total sales, including franchises, came to $10.3b (£6b).

The operation in Europe moved into profit after last year's £15m loss thanks to improved performances in the UK, Germany and Sweden, and the exit from the loss-making French market. Like-for-like sales were 7% ahead.

Worldwide, like-for-like sales growth fell to 1.1% (against 1.6% the year before), largely due to a product recall by a US supplier in August 1997.

During the year, Burger King, owned by Diageo, opened 823 new outlets, which brought its worldwide total to 9,835.