Burger King Holdings Inc said on Monday it expects unfavorable foreign exchange rates to reduce earnings for the current quarter by 1 to 2 cents per share, and to have a neutral to slightly negative impact on full-year results.

The Miami-based company, known for its Whopper hamburgers, previously said it expected currency translation to benefit fourth-quarter results and to have a slightly positive impact on all of fiscal 2010, which ends on June 30.

Our model had assumed a drag of half a cent in Q4, R.W. Baird analyst David Tarantino said in a client note.

Even with slightly lower estimates, we still consider (Burger King) a good value, said Tarantino, who cut his fourth-quarter earnings per share estimate by 1 cent to 34 cents and his fiscal 2011 estimate by 2 cents to $1.45.

The United States and Germany were the only markets accounting for 10 percent or more of Burger King's total revenue during the fiscal third quarter, which ended March 31.

During the third quarter, the United States and Canada contributed revenue of $407.1 million, while the Asia-Pacific and Europe, Middle East and Africa regions kicked in $163.8 million and Latin America contributed $26 million.

Burger King shares are down more than 1 percent so far this year, compared with the nearly 8 percent gain in McDonald's shares and the nearly 11 percent rise in the Dow Jones U.S. Restaurant and Bars index <.DJUSRU>.

Burger King, the second-largest hamburger chain after McDonald's Corp , also lowered its net restaurant growth target to 230 to 250 from 250 to 300 outlets previously, due to its exit from Israel, where it had 55 restaurants.

Shares were down 0.9 percent, or 17 cents, to $18.55 on the on the New York Stock Exchange.

(Reporting by Lisa Baertlein, additional reporting by Shobhana Chadha in Bangalore; Editing by Dave Zimmerman and Steve Orlofsky)