UPDATE 1-Burger King cheeseburger-pricing case can continue

* District Court will hear arguments on $1 cheeseburger

* Company says testing validated pricing plan
(Adds company statement)

NEW YORK, May 21 (BestGrowthStock) – Franchisees of Burger King
Holdings (BKC.N: ) have won the right to argue in court that the
hamburger chain acted in bad faith when it added its double
cheeseburger to its $1 Value Menu.

A Miami court ruled on Thursday that Burger King Holdings
has the right to set prices at its stores but said allegations
by the franchisees of bad faith by the company had enough
plausibility to be argued in court.

The National Franchisees Association had alleged Burger
King admitted that selling its double cheeseburger at $1 could
lead to the bankruptcy of stores.

U.S. District Judge K. Michael Moore ruled that, “construed
in a light most favorable to the NFA, these allegations
plausibly state a claim that BKC breached its duty of good

Burger King said in a statement emailed to Reuters it was
pleased by the court’s decision to reaffirm its rights, and
added that extensive testing “more than validated the business
case for the addition of this competitively priced product to
its Value Menu.”

Burger King spokesman Miguel Piedra also said that a number
of franchisees had embraced the promotion before its national

The National Franchisees Association sued Burger King late
last year in the Miami federal court, alleging that the company
did not have the right to enforce maximum pricing rules.

Fast-food restaurants use low-priced food like $1 burgers
to lure diners into restaurants, but if those items are priced
below cost, franchisees can suffer.

Officials at the National Franchisees Association and
Burger King could not immediately be reached for comment.

Shares in Burger King closed up 17 cents at $18.88 on

Stock Market Basics

(Reporting by Elinor Comlay, Nick Zieminski; Editing by Gary

UPDATE 1-Burger King cheeseburger-pricing case can continue