Burger King is on course to have things ‘it’s way’ – as it grabs customers from arch-rival McDonald’s.
This week, both announced their sales figures for the busy October to December quarter — and their fortunes couldn’t be more different.
McDonald’s posted a surprise 1.4 percent drop in US sales, which analysts said was the company’s biggest-ever decline. In simple terms, it meant customers ate millions fewer burgers, packs of fries and drinks.
In contrast, Burger King – famous for its 52-year-old ‘Have it your way’ slogan – today said its sales jumped 1.5 percent in the quarter.
Analysts said the sales boost was thanks to attractive offers on its popular Whopper burgers and $5 value meal deals that drew in customers, who also bought regular-priced items too.
McDonald’s also had a $5 deal but customers were less likely to ‘trade-up’ to full-priced items.
A bigger blow for the Golden Arches, though, was customers staying away after a e-Coli outbreak in late October.
Those fast food fans ate elsewhere. Burger King and Wendy’s saw some share gain during the period as a result, said Jim Sanderson, analyst at Northcoast Research.
McDonald’s was hit by an e-Coli outbreak that affected sales
McDonald’s is hoping value-based meals will bring customers back
Burger King and McDonald’s have been fierce rivals since their founding in the 1950s. Each is known for an iconic burger—the Whopper and the Big Mac—and they’ve often traded jabs in advertising campaigns.
Despite Burger King’s recent momentum, McDonald’s holds a big lead. It has around 27 per cent of the fast food market in the US, while Burger King – behind Subway and Starbucks – has 13 percent.
Burger King balanced its promotions ‘prudently with incentives to increase spend per visit for consumers,’ which drove comparable sales growth in the quarter, said Danilo Gargiulo, analyst at Bernstein.
Overall, Restaurant Brands, which owns Popeyes and Tim Hortons as well as Burger King, beat its profit and sales estimates.
Meanwhile, McDonald’s has a three-pronged strategy to get customers back in its doors.
The company is banking on nostalgia with the long-awaited return of the beloved Snack Wrap, extending the McValue Menu promotions, and launching a new chicken strip menu to capitalize on the ongoing demand for poultry.
McDonald’s is celebrating St Patrick’s Day by bringing back its iconic mint-flavored Oreo Shamrock McFlurry and its Shamrock Shake
This week it emerged, McDonald’s has brought back a fan favorite menu item – but only for a limited time.
The fast food giant is already celebrating St Patrick’s Day by bringing back its iconic mint-flavored Oreo Shamrock McFlurry, which debuted in 2020.
The seasonal dessert, known for its bright green color, is made with vanilla soft serve and ‘Shamrock’ mint syrup, with Oreo cookie pieces mixed throughout.
The item returned to menus on February 10, and will be available through March 23.
