UPDATE 3-Burger King bounces back as McDonald's flags

Mon Oct 29, 2012 2:29pm EDT
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* Overall same-restaurant sales rose 1.4 percent

* Pace of October same-restaurant sales accelerated

* Company cites increased focus on value-priced meals

* 4-cent dividend initiated

Oct 29 (Reuters) - Burger King Worldwide Inc turned in stronger-than-expected U.S. and Canadian restaurant sales for the latest quarter - when rival McDonald's Corp posted its worst quarterly restaurant sales growth in nine years.

Burger King executives declined to say whether additional business is coming from McDonald's, whose U.S. dominance has softened amid tougher competition from resurgent chains like Burger King and Yum Brands Inc's Taco Bell.

"We're keeping the sales and the share that we believe we gained earlier this year," Chief Financial Officer Daniel Schwartz said in an interview with Reuters.

The pace of the company's sales at established restaurants has accelerated so far in October, Schwartz said.

Burger King, known for its "Whopper" hamburgers, attributed the gains to its increased focus on value-priced foods that lure in more customers. Executives also said sales of higher-priced limited-time food specials, such as this summer's BBQ menu, are helping.   Continued...