Financing

Burger King's sales rebounded last quarter

The struggling burger chain’s same-store sales increased 8.7% in the U.S. as its marketing efforts take hold.
Burger King sales
Burger King's U.S. same-store sales have increased for four straight quarters. / Photograph: Shutterstock.

Burger King’s U.S. same-store sales surged 8.7% in the first quarter, parent company Restaurant Brands International (RBI) said on Tuesday, as the brand’s marketing efforts in recent months appear to be winning over consumers and the environment turns favorable to fast-food chains.

The results follow the chain’s investments into marketing and digital as part of a $400 million “Reclaim the Flame” plan announced last year. Burger King invested $7 million in advertising and digital investments plus another $7 million toward remodels in the first quarter, RBI said.

The company has had some success with its “Whopper Whopper” campaign, ads of which began running last November.

Burger King has been struggling in recent years as past marketing efforts, notably the chicken sandwich it introduced in 2021, did not win over consumers. Weak sales led to serious problems with many of its franchisees amid soaring labor and food costs. Two large-scale operators declared bankruptcy this year, with dozens of the chain’s restaurants closed.

The 8.7% same-store sales result in the U.S. was the fourth straight positive quarter for the chain and its best result since the second quarter of 2021, when it was recovering sales lost during the pandemic.

Executives on Tuesday told investors that Burger King's restaurant-level profits in the U.S. improved as costs eased in the quarter.

The increase in sales came as fast-food sales appear to have been particularly strong. Burger King rival McDonald’s, for instance, reported a 12.6% same-store sales increase in the first quarter. The sandwich chain Subway said its same-store sales increased 11.7% in North America last quarter.

Among RBI concepts, same-store sales increased 3.4% at Popeyes Louisiana Kitchen in the first quarter. The sandwich chain Firehouse Subs’ same-store sales increased 6.7%.

The coffee-and-doughnut chain Tim Hortons’ same-store sales increased 15.5% in its home market of Canada, continuing that chain’s recovery.

Burger King’s international same-store sales increased 12.3% in the first quarter, RBI said.

Revenues at RBI increased 9.6% to $1.6 billion. Net income increased 2.6% to $277 million, or 61 cents per share. But net income increased 15% after adjustments for one-time events to $340 million, or 75 cents per share.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Investors regain their taste for Sweetgreen

The Bottom Line: The salad chain’s stock rose 34% on Friday after sales and profitability were better than expected. The company’s shares are above its IPO price for the first time in two years.

Financing

Here's a business tool to keep restaurant executives employed after a tough Q1

Reality Check: The first three months of 2024 weren’t easy on restaurant chains, but spin-doctoring proved to be. Indeed, there must have been a run on shovels.

Food

The Taiwanese wheel cake may just become the next cronut

Behind the Menu: Money Cake opens in New York, tempting pastry fans with the waffle-cream puff hybrid.

Trending

More from our partners