Operations

Burger King commits $400M for major brand overhaul

Provided

September 12, 2022

Burger King has released the details of a plan, dubbed "Reclaim the Flame," designed to accelerate sales growth and drive franchisee profitability. The brand will invest $400 million over the next two years — $150 million in advertising and digital investments and $250 million for restaurant technology,kitchen equipment, building enhancements andhigh-quality remodels and relocations, according to a press release.

The plan was announced by Tom Curtis, president of Burger King North America, at Burger King's annual convention.

"Wearerelentlesslypursuingabetterexperiencefor ourguests. This is the driving force behind all initiatives that we are executing collaboratively with ourfranchisees," Curtis said in the press release. "Our plan is focused on a few importantpriorities—operational excellence, refreshed image,and enhanced marketing—that when put together provide a superior experience for our guests."

Burger King franchisees representing more than 93% of all U.S. restaurants have endorsed the plan and have agreed to co-invest in increased advertising firepower over the coming years.

"Our$400 million investment into the Burger KingU.S.system represents asubstantialdeployment ofcapitaltoward importantmarketing and imageinvestmentsaimedatacceleratingoursales growthandmodernizingour iconic brand across the U.S.," Matt Dunnigan, chief financial officer of parent company RBI, said in the release. "In 2023 and 2024, theseinvestmentsareexpected tohaveanaverageannualimpacttoadjustedEPS ofapproximately$0.10to $0.12,before consideringbenefits fromanypotentialsalesimprovements.In 2025 and beyond,we expect the impact to be accretive to adjusted EPS as ouradvertising investments conclude and we realize the long-termsalesbenefits ofourReclaim the Flameinitiativesandincreased advertising contributions from our system."