Burger King Worldwide Inc (NYSE:BKW) reported its earnings before the markets opened on Friday, and the company came out ahead of consensus. The stock rose 4 percent in pre-market trades as a result. Meanwhile Kraft Foods Group Inc (NASDAQ:KRFT)’s report missed the expectations of analysts. Trading on shares of Kraft were mostly flat in pre-market hours on Friday.

Burger king logo

This morning’s report from Burger King Worldwide Inc (NYSE:BKW) showed that the company’s income almost doubled during its fourth quarter as it shifted to a franchise business model, which significantly lowered the company’s costs. Burger King Worldwide Inc (NYSE:BKW) also changed up its menu and increased advertising, according to the advice of 3G Capital, a private investment firm which now owns the majority of the company.

Kraft foods

Burger King reported that revenue at restaurants open a year or more rose 2.7 percent during the fourth quarter, attributing that increase to its new menu items. It reported earnings of $48.6 million or 14 cents per share. In the same quarter a year ago, the company brought in just $25 million or 7 cents per share. Revenue fell to $404.5 million because of the costs associated with refranchising. Nonetheless, the company still beat consensus of $375.3 million.

The earnings story was completely different at Kraft Foods Group Inc (NASDAQ:KRFT). The company’s earnings for its fourth quarter fell 72 percent, largely due to restructuring costs and declining revenue. Kraft Foods Group Inc (NASDAQ:KRFT) reported $89 million or 15 cents per share in profits. In the same quarter a year ago, the company’s profits were $319 million or 54 cents per share.

During its fourth quarter, Kraft reported approximately $225 million in post-employment benefits, $46 million in hedging activities and $135 million in restructuring costs. The company’s revenue fell to $4.49 billion, a drop of 11 percent. That’s compared to the Thomson Reuters consensus of $4.74 billion in revenue or 23 cents per share.

The company’s operating margin dropped from 10.1 percent to 5.8 percent.

Shares of Kraft Foods Group Inc (NASDAQ:KRFT) were trading mostly flat in pre-market hours on Friday.