DRINKS firm Diageo saw profits at its Burger King fast food chain fall by 12 per cent as the economic slowdown and foot-and-mouth hit the business.

A lower number of restaurant openings hit US sales, while fears about the foot-and-mouth crisis hurt the chain in Europe.

Sales in the UK were "marginally down" during the 12 months to the end of June, and fell nine per cent in Germany, where concerns about BSE were also rife, the group said.

The setback came as Diageo reported group pre-tax profits of £1.98bn before one-off costs, a rise of nine per cent.

Profits were lifted by the premium drinks brands, including Johnnie Walker, Smirnoff and Guinness.