Aug. 25 (Bloomberg) -- Burger King Holdings Inc., the second-largest U.S. hamburger seller, said fourth-quarter profit rose 16 percent, beating analysts’ estimates, as the company expanded overseas. The shares gained the most in almost four months in New York trading.

Net income in the three months ended June 30 increased to $58.9 million, or 43 cents a share, from $50.6 million, or 37 cents, a year earlier, the Miami-based company said today in a statement. Analysts on average projected a profit of 33 cents, based on estimates compiled by Bloomberg. Sales fell 2.4 percent to $629.9 million.

Burger King opened 338 net restaurants outside of the U.S. and Canada as sales at North American stores were hurt by higher unemployment, more consumers eating at home and discounting by competitors. The U.S. stores offered $1 Whopper Jr. burgers and 2-for-$3 chicken sandwiches.

“The company has become increasingly promotional in the face of declining traffic,” said Tom Forte, an analyst with Telsey Advisory Group in New York. He has a 12-month price target of $21 to $23 on the stock. “They did have a very strong year as far as new unit growth, and that shows the strength of the brand.”

Burger King advanced $1.09, or 6.2 percent, to $18.75 at 4 p.m. in New York Stock Exchange composite trading, the biggest gain since May 4. The stock has lost 21 percent this year, while McDonald’s Corp., the largest hamburger seller, has fallen 9.2 percent.

Tax Rate

A lower tax rate added 7 cents a share to earnings in the fourth quarter. In the U.S. and Canada, restaurant margins improved to 13.5 percent, from 12.2 percent a year earlier.

Burger King forecast sales at stores open at least a year will be “soft” in the first half of fiscal 2010, primarily in the U.S., Germany and Mexico. The company plans to open as many as 300 stores this fiscal year.

The company didn’t provide a profit forecast for fiscal 2010, citing “continuing consumer uncertainties.” Analysts estimate profit of $1.48 a share and sales of $2.62 billion.

“We anticipate that the challenging consumer environment will continue due to high unemployment levels, which has resulted in a significant reduction in out-of-home eating expenditures,” Chief Executive Officer John Chidsey said in the statement.

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net.

Last Updated: August 25, 2009 16:16 EDT