News

Reduction of local ad spend affects Burger King franchisee's sales

August 5, 2014

Carrols Restaurant Group, Burger King's largest franchisee, has reported its Q2 results, which included a restaurant sales decrease of 2.8 percent. Comp restaurant sales were down 2 percent compared to a 1.4 percent increase in the prior year period.

These numbers were in contrast to Burger King corporate's results announced last week, which included a 5.4-percent systemwide sales increase.

CEO Daniel T. Accordino said in a news releases that the sales trends were weaker than expected and were the result of several factors, including a reduction in local ad spending compared to Q2 2013.

"Burger King Corporation's non-renewal of a matching contribution program impacted the advertising spending in a number of our markets. Total sales increases from our remodeling program were also lower due to more than a 50-percent reduction in the number of remodels completed thus far in 2014 compared to the first half of 2013. We anticipate this trend will reverse given our reacceleration of remodeling planned for the second half of this year," he said.

As of June 29, Carrols owned and operated 560 Burger King restaurants.