Burger King Surges Past McDonald's in US Sales Growth
Restaurant Brands International (QSR) owned Burger King US posted an impressive 8.5% surge in comparable sales for the second quarter, beating analyst expectations and outperforming arch-rival McDonald's (MCD).
The result marked a clear victory lap for Burger King, which has been focused on improving its core offerings. In contrast, McDonald's launched a flurry of new menu items and promotions, but failed to generate incremental traffic.
Burger King took the opposite path by focusing on quality ingredients and sharpening its marketing around its iconic Whopper burger. The chain made subtle but meaningful changes to its flagship product, including a more premium bun and reformulated mayonnaise.
According to Restaurant Brands CEO Josh Kobza, Burger King's performance is 'a great example of what's possible when you invest in the fundamentals and execute well.'
In contrast, McDonald's CEO Chris Kempczinski admitted that flawed execution was a major culprit behind its disappointing results. The chain's new McValue platform and specialty drinks failed to deliver against expectations.