Late yesterday afternoon, Burger King (BKC: sentiment, chart, options) released its fourth-quarter earnings report. The report disappointed investors and even led to a downgrade, so the stock is more than 1% higher in this afternoon's trade. Confusing? Yes. So let's deal with the news first, then look at the technicals.

BKC reported fourth-quarter earnings that increased 42% from those reported a year ago, as it earned 37 cents per share this year compared to 26 cents per share last year. Not only were these results better than a year ago, but the food firm topped the consensus estimate by 3 cents per share. While the results topped expectations, some investors are focusing on higher food costs and expenses for rehabbing older locations.

These concerns led UBS to cut its rating on BKC to "neutral" from "buy." The brokerage stated that the company's full-year earnings guidance "of 12% - 15% growth seems to be back-end-weighted ... and any upside seems dependent on food inflation diminishing in 1H (the first-half) next year." This combination of news could have been the reason that the stock dropped 7% in after-market trading yesterday.

Same-restaurant sales for the quarter increased 5.3% worldwide and 5.5% in the U.S. and Canada. The sales increase was close to the 6.1% jump McDonald's (MCD) reported in its recent quarter. This performance prompted Steven T. Kron from Goldman Sachs to note that he was "impressed by Burger King's ability to drive top-line growth around the globe." Perhaps it is this news that has helped the stock gain more than 2% (up more since I started writing). Whatever the reason, as long as the freaky king doesn't show up at my door, I'm good.