The home of the Whopper has enjoyed its biggest sales jump in nearly a decade during the first quarter, boosted by a new flavour of its signature burger and a popular two for $5 promotion. Burger King’s sales rose 6.9 per cent at established locations in the US and Canada, parent company Restaurant Brands International said Monday. The company, which also owns Tim Hortons doughnut chain, declined to say whether the increase at Burger King was driven by higher average spending or an uptick
in customer traffic, which is a key indicator of health.
Restaurant Brands International CEO, Daniel Schwartz, said in an interview there was no single factor that drove the improved sales in the US. Instead, he cited a variety of factors including a spicy BLT Whopper, marketing during the NCAA championships, and healthy sales at breakfast.
“We said it in the past – there’s no silver bullet,” he said.
The showing comes as rival McDonald’s has been fighting to hold on to customers, with sales at established locations falling 2.6 per cent during the first three months of the year.
Taco Bell, which is benefiting from the launch of a national breakfast menu, saw sales rise six per cent during the period, according to parent company Yum Brands Inc.
On a global basis, same store sales rose 4.6 per cent at Burger King and 5.3 per cent at Tim Hortons.
For the quarter, Restaurant Brands International Inc reported adjusted earnings that beat analysts’ expectations.
The Canadian company, which was formed in December through a combination of Tim Hortons Inc and Burger King, reported a loss of US$8.1 million (A$10.31 million), or US four cents per share. But it had earnings of US18 cents per share after adjusting for certain costs.
Analysts polled by FactSet expected profit of US15 cents per share.
Revenue rose slightly to US$932 million. Analysts polled by FactSet expected US$944.7 million.
The results were subdued by a strong US dollar and the company said it would have seen 9.6 per cent growth without currency swings.
AP
