Burger King's Second Quarter: Comps Could Be Better

Because comps were rather weak, I can't claim to be too enamored by the expansion in the bottom line, even though it beat estimates by a few pennies, as indicated by data at Earnings.com. Burger King is a popular brand, and I admire its edgy marketing campaigns, but management is obviously having a rough time gaining positive momentum. In fact, according to The Wall Street Journal, comps were bad in the previous two quarters as well. There's mention, too, about the issue of value pricing; the chain apparently hasn't been very successful in appropriately assessing the dynamics of elasticity in relation to its target audience.

I'm not certain Burger King shares are ready to be purchased just yet, but if they start to drift lower, they could be worthy of examination as a contrarian play. After all, this company should be around for a long time to come, and it should eventually get through its difficulties. Remember when McDonald's was out of favor? Consumers will always love fast food, and Burger King will always play a part in serving them.

Disclosure: I don't own any company mentioned; positions can change without notice.