BOSTON John Chidsey, chief executive of Burger King Corp., told analysts at a CIBC World Markets conference here Wednesday that 80 percent of the Miami-based chain’s future growth would come from international expansion.
Burger King’s worldwide net-growth goal is to add between 300 and 400 units annually, he said. He cited Europe, the Middle East and Latin America as today’s leading international markets, but predicted that Asia would surpass all other regions in the next few years. Quick-service competitors McDonald’s Corp. and Yum! Brands Inc. already have reported significant success in overseas markets.
Burger King operates more than 11,200 restaurants in all 50 states and more than 65 countries and U.S. territories worldwide. Approximately 90 percent of BK restaurants are franchised.
Net growth in 2006 was just 25 units because of a large number of closures in the United States, he said. But, he added, “Closures have started to come down.”
Another priority for the company is to achieve average restaurant sales of $1.5 million, Chidsey said, noting that the 50 most recently added restaurants have reached that goal, compared to a systemwide average of $1.2 million. The cost to build a new restaurant today is 28 percent less than it used to be, and now averages $900,000, he claimed.
The rollout to all company restaurants of the first new broiler in 40 years has cut electricity and gas costs in half, a savings of between $5,000 and $6,000, Chidsey noted.
Franchisees also are starting to replace old broilers with the new version, he said.
Fiscal-year results for the year ended June 30 will be announced in August.
Separately, Burger King appointed Mike Kappitt to the newly created position of senior vice president global business intelligence and strategy, effective immediately, officials said. He has been with Burger King for five years.