- Burger King (QSR, $60.89) will be splashing $400M on advertising and renovating its restaurants to resuscitate US sales by 2025. The plan comes off the comany's sales lagging behind its competitors, McDonald’s (MCD, $259.52) and Wendy’s (WEN, $ 20.53), in the recent second quarter.
- Plans reveleaed they will spend $200M to support remodels of 800 of its locations, $50m to customize 3,000 restaurants with technology, kitchen equipment and building enhancements. Burger King hopes to revive its profit level, since it has observed that remodeled restaurants increase sales by 12% in their first year.
- The strategy has received support from 93% of franchiees who are in agreement of this move, as Burger King is providing incentives like discounts on advertising and royalty fees for up to seven years.
Why it matters
In wake of the unparalleled inflation, and consumers preffering lower-priced food options Burger King is ready to make even bolder changes. The company is restructing its locations, improving their menu and splurging money on tech-based solution to improve their current infrastructure.
