Burger King's sales lifted by simplified operations

April 25, 2014

Burger King reported its Q1 results today, which inclued a global comp sales increase of 2 percent, and a systemwide sales increase of 6.9 percent in constant currency.

CEO Daniel Schwartz said the company has started off the year strong, despite severe winter weather.

"Our commitment to launching fewer, more impactful products and simplifying in-restaurant operations helped drive improved performance," he said in a news release.

Internationally, sales were driven by new products and net restaurant growth.

Broken down by region:

  • U.S. and Canadian sales were up 0.1 percent, compared to negative 3 percent during Q1 2013.
  • EMEA sales were up 4.8 percent;
  • LAC sales were up 4 percent; and
  • APAC turned in a 3.8-percent increase.

Product news bolsters sales

Schwartz said the company's decision to launch fewer products that were more impactful is paying off. The Big King rollout and the all-new Spicy Original Chicken Sandwich both helped drive sales and traffic during the quarter.

The company's focus on its value menu — King Deals — was also a boon. In March, Burger King extended its King Deals menu to include breakfast, which provided a traffic lift in the competitive morning daypart.

"Going forward, we remain focused on further driving franchise profitability through ongoing initiatives to simplify our menu and in-restaurant operations," Schwartz said.

Topics: Financing and capital improvements , Marketing / Branding / Promotion , Operations Management

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