Burger King’s $400 Million Investment Pays Off

In the fast food world, Burger King has long been the bridesmaid, never the bride. The burger chain seems to be perpetually stuck in the shadow of McDonald’s, its bigger and more profitable competitor. And as of 2021, the home of the Whopper has lost its spot as the second-largest burger chain in America to Wendy’s.

But things may now be looking up for Burger King after announcing a huge $400 million investment last year aimed at improving its brand and restaurants. In the fourth quarter of 2022, the first full quarter for Burger King under its “Reclaim the Flame” capital campaign, the chain saw an 8.4% increase in overall same-store sales and a 5 % in the United States alone, CNBC reported. . U.S. same-store sales numbers were up from the 4% increase Burger King saw in the prior quarter.

In addition, the chain has seen customer satisfaction increase by more than 40%, as well as six consecutive quarters of growth in this area, RSQ magazine reported. And the profitability of the chain’s franchisees increased by 40% in the last quarter of 2022, although it was still down from 2019.

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Although Burger King still has room for improvement in terms of domestic sales, the fourth quarter of 2022 indicates that the “Reclaim the Flame” investment is starting to pay off.

“I feel really good about the direction we’re going,” Josh Kobza, the new CEO of Burger King’s parent company, Restaurant Brands International, said on the latest earnings call.

Kobza added that there was “definitely a lot of work to do,” but praised the “tremendous management team” led by Burger King’s U.S. and Canadian president Tom Curtis.

The $400 million campaign, announced in September 2022, includes a $150 million investment in advertising and digital components and a $250 million investment in restaurant technology, kitchen equipment, building improvements and high-quality renovations and moves over a two-year period.

In its fourth-quarter and full-year earnings report, Burger King said it had already channeled $13 million into the advertising and digital side of the investment, as well as $17 million into the restaurant.

Zoe Strozewski