Restaurant Brands International Burger King's results better than expected
McDonald's Corp raised expectations across the fast-food industry last week after posting a better-than-expected 1.3% rise in U.S. restaurants. "In light of McDonald's more robust numbers, it is disappointing that Burger King did not push into positive territory," Neil Saunders, CEO of retail research firm Conlumino, wrote in a note.
U.S. burger chains, including McDonald's, Burger King and Wendy's Co, are battling intense competition from upstart chains and meal-kit sellers. The sector is also under pressure from a drop in grocery prices, a trend that is encouraging more people to eat at home.
Burger King introduced new menu items such as Whopperrito, a burger-burrito mash-up, and Cheetos Chicken Fries, but the launches failed to attract more customers. "Burger King has more work to do to increase its appeal – including focusing on core lines and the overall restaurant experience," Saunders wrote.