But its shares fell nearly 4 percent as three big shareholders said they would sell about a third of their holdings in the company.

The world's second largest hamburger chain earned $49 million, or 35 cents per share, for the three months ended Sept. 30, compared with $40 million, or 30 cents per share, a year earlier.

Revenue increased 10 percent to $602 million from $546 million in the prior-year period.

Analysts were expecting a profit of 33 cents per share on revenue of $597.1 million, according to a poll by Thomson Financial. The earnings estimates typically exclude one-time items.

Meanwhile, three private equity funds -- TPG Capital, Bain Capital Partners and the Goldman Sachs Funds -- will sell 23 million shares of the company's stock, or about a third of their holdings in the company. The move may have pressured shares, which fell $1.08, or 3.9 percent, to $26.65 in morning trading Monday.

In Monday's earning's report, Burger King said worldwide same-store sales -- sales at stores open at least a year -- rose 5.9 percent, Burger King said, while same-store sales in the U.S. and Canada rose 6.6 percent. It's the 15th consecutive quarter in which Burger King has recorded positive same-store sales worldwide.

Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

In the U.S., the company said its marketing campaigns with "The Simpsons Movie" and "Transformers" drove sales of the Ultimate DoubleWhopper sandwich.

Miami-based Burger King did well with its TenderCrisp and Spicy Chick'N Crisp sandwiches, and saw improvements with its breakfast value menu and during late night hours, chief executive John Chidsey said.

"Our business momentum continues, as evidenced by strong worldwide quarter over quarter growth. Our evolving menu architecture and the worldwide strength of our marketing alliances drove significant revenue increases," Chidsey said.

Higher costs for labor and commodities such as beef, chicken and cheese were balanced by the stronger same-store sales, allowing company margins to expand, Burger King said. Income from operations improved 17 percent to $96 million, compared to $82 million reported in the first quarter of fiscal 2007.

The company also reported that its average restaurant sales surpassed the $1.2 million threshold for the first time, reporting a 7 percent increase to $1.22 million, compared to $1.14 million for the same period in the prior year.

Burger King paid a cash dividend of 6.25 cents per share in the first quarter. It also bought 252,000 shares through its previously announced share repurchase program and retired $25 million in debt using cash flow generated from operations.

The company and its franchisees opened 440 new Burger King restaurants in the past year, and Chidsey said he expected net restaurant growth in fiscal 2008 for the first time in six years.

Burger King operates more than 11,200 restaurants worldwide, second to industry leader McDonald's Corp. About 90 percent of Burger King restaurants are owned and operated by independent franchisees.