MIAMI Burger King is proving that it’s possible to beat the odds. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
(To view this week's print financial pages and accompanying charts, click here) —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
The No. 2 burger chain posted segment-leading results for its latest quarter on the strength of its value menus, kid-friendly marketing and new sandwich offerings—strategies long employed by burger leader McDonald’s. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
BK said domestic same-unit sales jumped 4.2 percent for the December-ended quarter. By comparison, McDonald’s said it fell prey to “softer consumer spending” and posted flat domestic same-store sales for December and a 3.3-percent increase for the quarter. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
Looking ahead, Burger King said its end-of-year momentum has continued into January and should remain through the first half of the year. The company said January sales have accelerated from December levels. McDonald’s was not able to boast the same, stating that its flat same-store sales in December will only increase modestly to 1.5 percent in January. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
Burger King said it was able to buck industry trends with sales and marketing surrounding its Whopper sandwich, new Home-style Melts and a Sponge-Bob Squarepants promotion. The company, which operates or franchises about 11,300 restaurants, also cited its value menu and aggressive advertising. Specifically, BK cited the Whopper Freakout campaign and promotional partnerships with the National Football League and family-driven brands like Snoopy and Cabbage Patch Kids. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
“The company boasts a very successful high-low menu strategy, offering both premium products… and value menu choices to appeal to consumers across a wide range of income brackets,” said John Ivankoe, securities analyst at JP Morgan. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
To continue the momentum, Burger King is testing Apple Fries—apples cut in the shape of French fries—to further attract mothers looking for more healthful offerings for children, a BK Wrapper rolling out in March and April, and BK Buddies sliders, which are already in some units abroad. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
McDonald’s has employed the strategies for years, many analysts noted. But now it’s Burger King’s turn to benefit from the tailwinds of remodeled units, menu innovation, value menu pricing and strong advertising, just as McDonald’s has during the past two years, they said. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
“Our results this quarter substantiate our ability to outperform the restaurant industry despite macroeconomic pressures,” said BK chief executive John Chidsey. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
The company also said it would exceed its 2008 per-share earnings growth outlook—a rare announcement lately, as most companies have slashed their outlooks in response to the sluggish economy. Burger King said it plans to increase in annual earnings per share “in excess” of 15 percent. Previously, it expected an increase of between 12 percent and 15 percent. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,
For the quarter ended Dec. 31, net income totaled $49 million, or 36 cents per share, compared with net income of $38 million, or 28 cents per share, in the same quarter a year ago. Revenue rose 10 percent to $613 million. —Call it a whopper of a revelation: Despite a slowdown in consumer spending that is starting to humble many quick-service operators,